Richmond midfielder Dion Prestia, 33, and Melbourne premiership player Steven May, 34, were each charged over the incident at a Victorian coastal town.
Two groups were involved in an altercation in Sorrento about 2am on December 27, 2024, and two men were taken to hospital with injuries, police previously said.
Prestia, a three-time premiership player, was charged on summons with recklessly causing serious injury, intentionally causing injury, recklessly causing injury and affray.
May, who announced his sudden retirement from the AFL in March despite being contracted until the end of 2026, was charged on summons with affray.
Both men appeared via video link into Frankston Magistrates Court on Friday morning where prosecutor Alex Turner advised the charges were withdrawn.
Magistrate Tony Burns subsequently confirmed all of the offences against the two men would be struck out.
He ordered the footballers' legal costs be paid by the Chief Commissioner of Police, following an application from defence lawyer Tony Hargreaves.
Victoria Police said the decision to withdraw charges was made after available evidence was assessed and it was determined there was no reasonable prospect of conviction.
"Victoria Police has engaged with all parties to inform them of the decision," the force said.
"Given that the investigation is ongoing Victoria Police cannot comment further at this time."
May and Prestia only spoke during the brief hearing to confirm they could hear the court and to thank the magistrate after he advised they could leave the link.
Mr Hargreaves refused to comment on the outcome as he left court and Richmond have since declined to comment.
A 26-year-old Blairgowrie man was convicted and fined $7500 over the altercation in February.
May and Prestia have consistently denied the allegations and the court was told in March that two other suspects were being interviewed.
There was no footage of the altercation and investigators were relying on word-of-mouth evidence from two competing groups, Mr Turner previously told the court.
"It's a situation where largely this case is put on a word-on-word basis," he said in March.
"We've got a certain number of witnesses that say that the accused persons were involved.
"We've got a number of persons who say that the accused persons weren't involved."
Prestia and May started their AFL careers together at the Gold Coast Suns in 2011.
Prestia won three premierships for Richmond and was awarded the club's best-and-fairest in 2019.
May played in Melbourne's drought-breaking 2021 AFL premiership and was a dual All-Australian player.
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