The DMO's Helicopter Systems Rear Admiral Mark Campbell said media reports alleging pilot error had been a factor in the engine failure were incorrect.
"There is no suggestion of pilot error as alleged in one UK report," RADM Campbell said.
Eurocopter CEO Dr Lutz Bertling has also written to minister for defence materiel and science Greg Combet to directly refute any suggestion that engine damage was caused by improper handling of the aircraft by ADF pilots.
RADM Campbell also said an inspection regime and preventative measures had been developed to lift the current flying suspension.
"Extensive work has been conducted by Rolls-Royce Turbomeca and our industry partners with support from DSTO to identify the cause of the engine failure," RADM Campbell said.
"We are advised the failure resulted from compressor blade fracture due to contact with the engine casing."
The first Army capability objective of one deployable MRH90 troop will also be delayed.
Australian Aerospace and its engine supplier Rolls-Royce Turbomeca have worked with the Commonwealth of Australia to identify the cause of the incident and return the MRH90 fleet to service with updated start-up procedures.
During the MRH90's suspended flight operations, Australian Aerospace continued assembling and testing, to support the aircraft's introduction to the ADF.
Of the 46 MRH90 helicopters ordered for the Australian Navy and Army, 11 have been accepted and are being used for training and testing which contributes to the development of operational capability over the next few years.
It is understood that the impact of the engine failure combined with the workload to address some technical issues with the aircraft will delay the first flight at sea for Navy, which is now expected to occur in mid 2011.