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.