Simon Radford, 35, from Gosport, along with three other members of the navy hockey team were accused of carrying out an assault on a Canadian military base in 2015 in Shearwater, Novia Scotia.
However the BBC has reported that prosecutors have now dropped the charges because there was no realistic prospect of convicting Mr Radford.
The alleged victim’s ‘selective’ account had previously been questioned by a Novia Scotia Supreme Court judge.
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The BBC reports that Justice Patrick Duncan said she ‘maximised that evidence which supported her narrative and minimised any events that might be inconsistent with her narrative'.
Mr Radford along with Darren Smalley, also of Gosport, as well as Craig Stoner, 24, of Stonehouse and Joshua Finbow, 23, of Broughton were arrested by Canadian military police in April 2015 while they were representing the Royal Navy at a hockey tournament.
Prosecutors had already dropped charges against Mr Stoner and Mr Finbow while Mr Smalley was acquitted earlier this year.
Mr Radford had been due to stand trial with Mr Smalley but it was put on hold after he became unwell and now charges have been dropped against him.
The court was told that a female civilian was invited to the barracks in Shearwater, near the city of Halifax, after meeting a British sailor on the dating app Tinder.
She was overheard saying that she was going to sleep with Mr Radford, the trial heard.
The complaint told the court the she later awoke face down and naked as at least three men sexually assaulted her.
Mr Smalley was acquitted in January of this year and delivering his verdict Justice Duncan said the complainant's evidence was not credible.