The MP was arrested on Tuesday, 2 December but released on police bail until today when he was told no further action would be taken over the allegations.
Mr Pritchard, who entered the Commons as MP for Wrekin in 2005, told last year how he had been targeted by the journalist as part of the sting that eventually led to the downfall of Tory minister Brooks Newmark over sex selfies.
A police spokesman said: “A 48-year-old man voluntarily attended a north London police station on Tuesday, December 2 where he was arrested, following an allegation of rape in central London.
“He returned on bail on January 6 where he was informed he will face no further action as there was insufficient evidence.”
He was secretary of the Tory 1922 committee for two years until 2012 and sits on the national security strategy committee, is expected to make a statement later.
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