"The parliament’s sovereign decision is not anyone’s personal victory, but a victory of a democratic state based on the rule of law," Temer said at a press conference.
The Chamber of Deputees rejected the charge against him by 263 votes to 227. Two-thirds of the parliament were needed to pass the charge to the Supreme Court, which would trigger an impeachment trial.
Temer will now serve out his term, which ends in December 2018. He said he would use this time to push through reforms and restore economic growth.
Brazil's prosecutor general Rodrigo Janot filed the corruption charge with the lower house in June after a recording emerged in local media, in which Temer appeared to be discussing bribes with the owner of Brazil’s meat processing company JBS.