Mr Evans, 20, was arrested after claims a 26-year-old woman was raped at the Great John Street Hotel, Manchester, in December 2007.
Police revealed the Crown Prosecution Service (CPS) had taken the decision not to prosecute.
The CPS said there was insufficient evidence to proceed.
A police spokeswoman said: “The CPS has now taken the decision to take no further action against the man arrested following an incident at a city centre hotel on Tuesday December 18 2007.”
Belfast-born Mr Evans, who is currently on loan at Sunderland, was arrested after a woman made an allegation of rape during a private party at the boutique hotel.
Players were among guests at a party at the Great John Street Hotel
Police were called to the building in the Castlefield area of the city in the early hours of 18 December.
The hotel had been hosting a private party attended by members of the Manchester United squad and other guests.
Mr Evans was arrested after presenting himself to police later that evening and subsequently released on bail.
The decision not to proceed with a prosecution was revealed on Friday and Mr Evans will face no action.
