The international forward filed his lawsuit in March against the Egyptian citizen who lives in Sharqiya governorate in the Nile Delta, accusing him of calling the player a slur on social media.
The court decided that the citizen’s comment was not meant as a slur against the player, who is of West Indian descent
The 24-year-old forward has pursued legal procedures against several people for online abuse and was able to obtain some fines and in one case, a jail term.
Rashford has made six appearances with Manchester United so far, scoring three goals.
He scored 12 goals in 46 international games with England.