No further action will be taken against a 32-year-old man arrested in connection with the explosion, police said.
A spokesman for Greater Manchester Police said: "The bail of the 32-year-old man who was arrested on suspicion of manslaughter has been cancelled by police."
Two year old Jamie Heaton died in the Buckley Street blast in June as he sat watching TV. Today a second man arrested appeared in court charged with manslaughter and causing £1.2 million of criminal damage.
Neighbour, 27 year old Andrew Partington was seriously injured in the blast and was recently woken from a coma to be interviewed by police.
He will appear again in November.
A man has been charged with the manslaughter of a two-year-old boy in a suspected gas explosion which flattened a number of homes in Oldham.
Jamie Heaton died in the blast while watching TV in his home in Shaw on June 26.
Andrew Partington, 27, who was injured in the incident, has been charged with manslaughter and causing criminal damage.
Partington, formerly of Buckley Street, Shaw, suffered burns in the explosion in Buckley Street and was recently brought out of a coma.
The seat of the blast was at his rented terrace house, which was next door to the home of Jamie and his parents, Kenny and Michelle.
Following Jamie's death, they paid tribute to "our little man" who was "a happy, little boy, mischievous and full of laughter".