Surrey Police said they would continue to work with French authorities on the investigation.
A statement added:
The 54-year-old man, from Chessington, was arrested on 24 June 2013 on suspicion of conspiracy to commit murder and interviewed as part of the on-going investigation.
At this stage there is insufficient evidence to charge him with any criminal offence and no further police action is being taken at this time.
Saad and Ikbal Al-Hilli from Claygate, Surrey and her mother Suhaila al-Allaf, who lived in Sweden, were found shot dead along with French cyclist Sylvain Mollier on a remote forest road in Chevaline on September 5 2012.
This remains a French-led investigation and officers from the Surrey and Sussex Major Crime Team continue to work closely with the French authorities.
We have carried out exhaustive enquiries in the UK on a number of active lines of enquiry under the terms of the Joint Investigation Team (JIT).
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