The Swedish prosecution had been asking British police to arrest Julian Assange over sex crime suspicions.
In a press release, the prosecutors said given the difficulty of pursuing the investigation that they have decided it is no longer proportionate to continue.
Marianne Ny, one of the Swedish prosecutors, said at Friday’s press conference that it was "regrettable we have not been able to carry out the investigation". But made clear that they "are not making any pronouncement about guilt".
Assange is still residing in the Ecuadorian embassy in London. British police have said that he is still wanted for skipping bail, but the level of resources that they will continue dedicate will be proportionate to that lesser offence.
"Detained for 7 years without charge by while my children grew up and my name was slandered. I do not forgive or forget," Assange tweeted following the announcement.
Assange wants to sue Sweden, according to his Swedish lawyer, Per Samuelsson.