GWENT police will take no further action against Nick Ramsay, the Assembly Member for Monmouth, following his arrest on New Year's Day.
Mr Ramsay, 44, has been released following investigation.
A Gwent Police spokesman said the force had received a report of a disturbance at a property in Raglan, at around 8.05pm on January 1.
The Welsh Conservatives suspended Mr Ramsay yesterday (Thursday) following an "incident".
At the time, a spokeswoman for the party group said the AM's suspension would be reviewed "following consideration of the matter by external agencies".
Mr Ramsay, who chairs the assembly's Public Accounts Committee, has served as an AM since 2007.
In a statement on Friday, a Welsh Conservative group spokesman said: “Further to today's news, as no further action has been brought, Nick's suspension will now be reviewed and the outcome reported in due course."
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