The former News of the World US editor will face no further legal action in the investigation into phone hacking at the Rupert Murdoch-owned tabloid, the Press Association reported on Tuesday.
James Desborough was held in August last year on suspicion of conspiring to intercept communications for the now defunct Sunday tabloid.
A Scotland Yard statement said a 39-year-old man “was today released from bail with no further action”, without identifying him.
Britain’s domestic Press Association news agency said the man in question was Desborough.
He is the third suspect to be told he will not be charged since the wide-ranging investigation was launched in January last year.
There have been 46 arrests under the three-pronged investigation into phone hacking, computer hacking and links between public servants and the police.
Desborough was arrested on August 18 by appointment at a London police station.
He joined the paper as a showbusiness and news reporter in 2005 before being promoted to US editor in 2009.
Murdoch shut down the News of the World last year after it emerged the tabloid had hacked into the voicemail of a schoolgirl who was later found dead.