The Press Association reporter arrested by police investigating allegations of phone hacking by journalists will face no further action, her lawyer said.
Laura Elston, 34, was detained on 27 June when she voluntarily attended an appointment at a London police station.
Scotland Yard said she was questioned on suspicion of intercepting communications.
But her solicitor David Corker said she had now been "dropped from the inquiry" and faced "no further action".
Ms Elston, who works as a royal reporter, was originally released on police bail until October.
PA editor Jonathan Grun said: "Laura Elston is a journalist of integrity who has had a distinguished career since joining us as a trainee more than a decade ago.
"We are pleased that this matter has been cleared up."
The mother-of-two joined the news agency as a graduate trainee in 2000.
She was interviewed after her arrest by detectives from Operation Weeting, an investigation launched by the Metropolitan Police in January following fresh allegations about phone hacking involving the News of the World.