The 27-year-old risked a one-year ban over the failed test, but Nevada authorities said he had been given a six-month suspension citing his co-operation with authorities.
He later blamed the tests on eating contaminated meat in his native Mexico, where several athletes across different sports have encountered similar problems in recent years. But with Alvarez suspended because of the positive test and so little time between the hearing and the fight promoters made a decision to cancel the bout.
Alvarez and his promoter, Golden Boy Promotions, maintained that the former junior middleweight and middleweight world champion did not knowingly take a banned substance.
Caroline Bateman, a Nevada deputy attorney general, suggested a punishment of six months from the day of Alvarez's first positive test on February 17.
Besides the suspension, Alvarez agreed to pay for and provide the commission with negative drug test results of his urine. both in competition and out of competition, before his next fight in Nevada.
"I am truly shocked about what has happened, and for those who have doubts and suspicions about my integrity I have always been and always will be a clean fighter", Alvarez said.
Canelo was expected to face Gennady Golovkin in a middleweight title rematch May 5 for the latter's World Boxing Association, World Boxing Council, International Boxing Federation (IBF), and International Boxing Organization titles.
GGG has already announced a new opponent for May 5, as he'll defend his IBO, WBA and WBC titles against Vanes Martirosyan, who hasn't fought since 2016 and has lost two of his last three bouts. Canelo and Golden Boy Promotions respect the rules of Nevada and are therefore satisfied with the settlement agreement reached today.
"Canelo looks forward to returning to the ring in September for Mexican Independence Day weekend to represent Mexico and boxing in what will be the sport's biggest event of the year". "If Triple-G doesn't win May 5, there's no talk about a Canelo rematch in the future". Gennady set the attendance record for boxing at StubHub in 2014 and we project to shatter that record on May 5.