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Police have told defender, Tommy Elphick, they have "no more interest" in him.
The 24-year-old was one of six footballers arrested on Thursday morning by detectives investigating an allegation of sexual assault.
The other five players, four from the Albion and one from AFC Bournemouth, have been released on bail until March.
The six were taken for questioning at different custody centres across Sussex. The alleged sex attack on an un-named woman had taken place in July 2011. Police say it was reported to them at the time but the suspects were only identified a week before the arrests.
Mr Elphick was arrested at his home in Brighton, the Bouremouth player was picked up in Dorset and the other four Albion players were detained when they arrived home on the team coach from an FA Cup replay at non-league Wrexham which the Seagulls won 5-4 on penalties.
The result earned the club a money-spinning tie against Premier League side Newcastle at the Amex stadium.