The Croatian striker scored the winner in Wednesday's replay against Wigan and he was on target again as Bolton beat Fulham 1-0 to book a quarter-final trip to Birmingham. Greater Manchester Police have confirmed that Klasnic will not face charges over the alleged rape of a teenage girl, following an investigation dating back to October.
"We are delighted the news broke there would be no case to answer," Coyle said. "We knew from the outset he had done nothing wrong. Ivan was in a bad position because we couldn't really say anything because of the extent of what was involved."
The Trotters boss added: "A lot of people look up to Ivan because of his fanbase in Croatia and Germany and the level he has always played at.
"It was horrible for him that they would have to read that, particularly when he was totally innocent. He has tried to deal with it with a smile on his face. He probably felt his family were hurt more than himself because he knew he had done nothing wrong.
"We are glad it is away and hopefully we can see the best of Ivan now in the run-in. Ivan is a natural goalscorer. There is still more to come from him."
Coyle felt Bolton deserved their victory at Fulham and he is relishing the clash with Birmingham, a tie he vowed to attack from the outset.
"Fulham have been in terrific form. We had to be at our best to win the game and I thought every player was terrific," he said. "Over the piece there is no doubting Bolton deserved to win. We are delighted to be in the quarter-finals."
Fulham were at least able to cheer the return to action of striker Bobby Zamora, who came off the bench after five months out with a broken leg.
"If we take the positives, the appearance of Bobby Zamora was huge for us and everybody saw what talent he has and what we have missed this year," said manager Mark Hughes.
Source: PA
Source: PA