The attorney general’s office in São Paulo said the case would be suspended due to a lack of evidence.
It did stress, however, that the prosecutors would make the final decision.
The probe started after Brazilian model Najila Trindade, 26, who waived her right to anonymity, came forward to accuse the PSG star of raping her.
Neymar, 27, denied the accusations and claimed he was being extorted.
Brazil was gripped by the case which dominated headlines.
The allegations were made after the star released a seven-minute video on Instagram where he revealed he had been accused of rape.
In the clip, Neymar said he wanted to make them public to “prove nothing really happened”.
He also shared WhatsApp messages that he claimed had been sent by Ms Trindade.
Ms Trinidad also released a video that she said showed an altercation between them.
Prosecuting lawyers now have 15 days to evaluate the case before the judge makes a final verdict.
Neymar allegedly raped the woman at a Paris hotel in June.
Earlier this year he was replaced by Dani Alves as Brazil captain.