Dougan is cleared of burglary charge.
The jury of six men and six women took 90 minutes to return a not-guilty verdict on the allegation.
They are due to return to the court today to decide on a second charge Dougan faces of assault.
Earlier in the trial yesterday, Professional Footballers' Association chief executive Mr Gordon Taylor and former Northern Ireland goalkeeper Pat Jennings spoke in defence of the ex-footballer.
The pair spoke in support of their former colleague, who faced the aggravated burglary charge as well as a charge of assault occasioning actual bodily harm on a man at the home of his ex-lover, Patricia Thompson, in Yew Street, Graiseley, Wolverhampton, in July last year.
Mr Taylor told the jury he succeeded Dougan as chairman of the PFA in 1978.
He said: 'I wanted to make sure I came to court to speak on his behalf.
'I've known Derek for more than three decades as a very proud and fearless leader of players and also a very caring person.'
In a statement read to the court, former Arsenal, Tottenham and Northern Ireland goalkeeper Pat Jennings said: 'I have never known him to show violence or aggression to anybody.'