Police believe holiday deaths were accidental
King Edonmi, 29, and Mo Liasu, 27, died less than 24 hours after arriving on holiday in Albufeira. The men, from Ipswich, are believed to have drowned on Tuesday.
A spokesperson for the Policia Judiciaria, Portugal's criminal investigation police, said inquiries so far had shown "no evidence of criminal activity".
Mr Edonmi's sister, Kemi, paid tribute to the pair online and dispelled local reports that the men had been drinking.
In a statement, police in Portugal said: "The inspection of the scene revealed no evidence of criminal activity.
"Witnesses to the events were interviewed, confirming the investigation's belief that it was an accident."
The Foreign Office said it had been supporting the families involved and coordinating with Portuguese authorities.
Kemi Edonmi wrote online: "My best friend is really gone. Rest in peace to my big brother and his best friend Mo, we love you and will never forget you both.
"The whole family is comforted by the fact that King died in Christ.
"From Jesus - For Jesus - Back to Jesus. We shall all meet again."
She added that "my brother died trying to save his friend's life".
Ms Edonmi criticised speculation that the men had been drinking, writing: "My brother and Mo do not drink and were not intoxicated at the time of the incident.
"Articles with false information and insensitive comments don't know the pain they're causing the people closest to King and Mo."
In the UK, candles, flowers and tealights spelling out the men's names have been laid near flats on Ipswich Waterfront.
A fundraising page set up to help pay for the repatriation of their bodies has been closed after it passed £25,000.
A joint statement from the families of both men said: "We would like to extend our deepest and most sincere thanks to every single person who donated, shared and supported us during this heart-breaking time.
"Because of your incredible generosity, preparations have now been made to bring our beloved King and Mo home, so they may be laid to rest with the love, dignity and peace they so deeply deserve."
Thanking people for their support, the statement continues: "The parents of King and Mo have been profoundly moved by the outpouring of love and support from the community."
Additional reporting by PA Media.
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