Levi Davis, 25, died following an incident in Wellingborough Road, Rushden, on Saturday, December 7, at around 8.30pm.
Northamptonshire Police said a large team of detectives from the major crime team have been working on the case around the clock and pursued a number of lines of enquiry.
Senior Investigating Officer, Detective Inspector Pete Long, said: “This has been an exceptionally fast-paced investigation involving the collection of numerous pieces of evidence, crucially one of which is high-quality CCTV footage which shows the entire incident from start to finish.
“Following a consultation with the Crown Prosecution Service this evening in respect of all the evidence gathered, a decision has been made to release the 27-year-old man arrested on suspicion of murder with no further action.
“I know there is an extensive amount of interest and speculation surrounding this case and I know this decision may leave many people confused, however I want to reassure the community in Rushden that this has been an exceptionally thorough investigation involving very experienced detectives from across the region.
“It will be a source of frustration to many people that we are unable to go into more detail, but this is because of an impending court process relating to a second 27-year-old man charged with attempted murder in connection with this case.
“Specialist officers will continue to work closely with Levi’s family at this extremely difficult time.”
Jake Dean Swords, aged 27, of Rushden, charged with the attempted murder of a 27-year-old man, will next appear before Northampton Crown Court via video link in January.
Increased police patrols by both response officers and neighbourhood officers continue to take place in the Rushden area to reassure the local community. If you have any concerns, please approach one of our officers who will be happy to assist. Alternatively, you can call us on 101 or speak to Crimestoppers anonymously on 0800 555111.
Northamptonshire Police are not seeking anyone else in connection with this case.