A Melbourne school principal will return to his job two months after being suspended when a video emerged showing him dragging a primary school student by the arm.

Key points: The principal has been officially reprimanded and has offered a formal apology to the boy's family

The principal has been officially reprimanded and has offered a formal apology to the boy's family Steve Warner said he had made an "unacceptable choice" and was "ashamed" of his actions

Steve Warner said he had made an "unacceptable choice" and was "ashamed" of his actions His reinstatement has been welcomed by the school council, which described him as "fabulous"

The video, posted online in January and circulated widely on social media, showed Steve Warner, the principal of Manor Lakes P-12 College in Wyndham Vale, dragging a nine-year-old boy across the playground.

Mr Warner was stood down from a position he had held since 2016 while the Victorian Department of Education and Victoria Police investigated the incident.

The Education Department said its investigation was complete, stating: "We are confident that he is the best person to lead the college."

In a statement, the department confirmed Mr Warner would return to his role in late April and would be supported in the transition by the Independent Office For School Dispute Resolution.

"The investigation found the incident was not handled appropriately and the conduct did not meet the behaviour expected of a principal. These actions were unacceptable," the statement reads.

"Appropriate action has been taken, including an official reprimand and the principal offering a formal apology to the family affected.

"Mr Warner has a long track record of educational excellence and has made a significant contribution to schools throughout Melbourne, including Manor Lakes. We are confident that he is the best person to lead the college."

Victoria Police said in a statement the incident had been investigated, and that: "No criminal offence has been found and there will be no further police action."

Principal's apology: 'I am ashamed'

In a letter of apology sent to parents and carers at the school in Melbourne's south-west, Mr Warner said he had made an "unacceptable choice" and was "ashamed" of his actions.

"I have offered a formal apology to the family involved, however I wish to also unreservedly apologise to the school community for the impact it has had and disruption it has caused to the school," the letter reads.

"I understand how distressing the footage was and I know I have work to do to rebuild your trust and restore your confidence in me as principal."

Parents and school council members have welcomed the news.

Since Mr Warner was suspended in January, more than 15,000 people signed an online petition calling for his reinstatement.

Mark England, the petition's organiser and a parent of two children at the school, said he welcomed Mr Warner's return.

"He has made so many positive changes to the school in his short time, and without his guidance it would have been a huge step backwards," Mr England said.

"The entire school community is looking forward to seeing him back at the helm and helping our kids to get the education they truly deserve."

School council president Janette England said the council was "really happy" with the outcome of the investigation.

"It feels like it's taken a long time to get to this point, but I understand the department had a process to follow," Ms England said.

"He's such a fabulous principal. He's made such a difference for so many children, parents and communities — we just needed him back."

Government 'overreacted': Opposition

Opposition spokesperson on education Cindy McLeish said she was pleased Mr Warner would be returning to his position, but she questioned whether the Andrews Government's response to the video was appropriate.

"These investigations typically take 12 to 18 months," Ms McLeish said.

"The fact that this has been fast-tracked shows the Government overreacted by disciplining him the way that they did."

But Premier Daniel Andrews defended the suspension and investigation.

"This was a very serious incident, a very confronting incident," he said.

"It needed to be investigated seriously, and that's exactly what's occurred here."

"I'm not going to make an apology for having taken this matter very seriously.

"The principal has apologised, he's now going to be back at school … with the support of the vast majority, if not everybody, in that local school community, and I wish him well."