Shahidan Kassim, who was on trial for molesting a teenager, has been granted a discharge not amounting to acquittal.
According to the Arau MP's lawyer Zamri Ibrahim, the complainant informed the court of her wish not to pursue the matter.
The complainant had addressed the court in camera during proceedings.
Sessions Court Judge Ainul Shahrin Mohamad then made the ruling and ordered for Shahidan's bail to be refunded.
The former menteri besar was accused of molesting the teenager inside a vehicle along the roadside near the Syed Putra Stadium at 11.30am in Kangar on Oct 20 last year.
Meanwhile, Shahidan refused to comment on the court's decision.
"I am fasting. I am a Muslim and I respect the decision," he said, according to Berita Harian.
Based on testimonies from two witnesses yesterday, the complainant was asked to approach Shahidan's vehicle which was parked near a group of street performers.
The court heard that the complainant spent about two to three minutes inside the vehicle. The complainant then alighted from the vehicle and rejoined her family.
Witness Adzleen Junaira Mohd Nasir, who was busking nearby, testified that the complainant brisk walked from the vehicle and told her family what happened.
"She told her mother she was touched on the shoulder and left hand by DSSK (Shahidan)," she added.
Adzleen said she accompanied the family to lodge a police report at 3am on Oct 21. The complainant withdrew the report at 10am on the same day.