13 July 2012
Last updated at 12:47 GMT
Danny Care was recalled to the England team by coach Stuart Lancaster
He was bailed pending further inquiries, but both the police and the Crown Prosecution Service (CPS) said no further action would be taken.
Care said he was "relieved and happy" at the decision.
Harlequins said in a statement: "The CPS and West Yorkshire Police have advised Danny Care's legal representatives that he will not be charged in relation to an alleged incident of sexual assault in Leeds."
Care had earlier accepted a police caution for being drunk and disorderly on that night after he was arrested for urinating outside the city's Queens Hotel, but he denied the allegation of sexual assault.
"I would like to thank all those who have supported me through this difficult time, in particular, my family and friends and all at Harlequins," he added.
Dropped by England A month ago the former Leeds player was recalled to the England team by coach Stuart Lancaster, after a series of alcohol-related incidents threatened his international future.
The first incident came in December 2011 after Harlequins' Heineken Cup defeat by Toulouse, when he was arrested and fined by police for being drunk and disorderly in Weybridge.
Care was also fined £10,000 by Harlequins for the incident.
He was then banned from driving for 16 months and fined £3,100 after being arrested for drink driving in the early hours of New Year's Day.
That incident led to Care being excluded from England's Six Nations championship campaign by Lancaster.
Care announced in May he had given up drinking to get his international career back on track and he was picked for England's recent tour of South Africa. COPY http://www.bbc.co.uk
England rugby's Danny Care sexual assault case dropped
Danny Care was recalled to the England team by coach Stuart Lancaster
England rugby union player Danny Care will not face prosecution over an alleged sexual assault on a woman in Leeds.
The 25-year-old Harlequins scrum-half was arrested by West Yorkshire Police after an incident in March.He was bailed pending further inquiries, but both the police and the Crown Prosecution Service (CPS) said no further action would be taken.
Care said he was "relieved and happy" at the decision.
Harlequins said in a statement: "The CPS and West Yorkshire Police have advised Danny Care's legal representatives that he will not be charged in relation to an alleged incident of sexual assault in Leeds."
Care had earlier accepted a police caution for being drunk and disorderly on that night after he was arrested for urinating outside the city's Queens Hotel, but he denied the allegation of sexual assault.
"I would like to thank all those who have supported me through this difficult time, in particular, my family and friends and all at Harlequins," he added.
Dropped by England A month ago the former Leeds player was recalled to the England team by coach Stuart Lancaster, after a series of alcohol-related incidents threatened his international future.
The first incident came in December 2011 after Harlequins' Heineken Cup defeat by Toulouse, when he was arrested and fined by police for being drunk and disorderly in Weybridge.
Care was also fined £10,000 by Harlequins for the incident.
He was then banned from driving for 16 months and fined £3,100 after being arrested for drink driving in the early hours of New Year's Day.
That incident led to Care being excluded from England's Six Nations championship campaign by Lancaster.
Care announced in May he had given up drinking to get his international career back on track and he was picked for England's recent tour of South Africa. COPY http://www.bbc.co.uk
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