Tobias Friedrich Moran, 43, was charged with murdering German backpacker Simone Strobel and intending to pervert the course of justice in July 2022, after being extradited to NSW.
The charges were withdrawn when his matter was mentioned at Lismore Local Court on Wednesday.
He was granted bail a week after being charged last year to return to his family and home in City Beach, Western Australia, with a $250,000 surety and a requirement to surrender passports and report to police thrice weekly.
NSW prosecutors opted not to proceed with an application to detain him that day after considering the case, before withdrawing the charges altogether.Â
His barrister previously told the court there was no new evidence linking Mr Moran to the death and the magistrate described the circumstantial case as "not the strongest" when he was granted bail.
Simone Strobel's naked body was found at a sportsground at Lismore on the NSW northern rivers region in February 2005, six days after she was last seen at a nearby caravan park.
The kindergarten teacher had spent the night with friends, including Moran and his sister, with whom she was travelling.
A $1 million reward for information was announced in 2020.
The court will hear applications to pay Mr Moran's legal defence costs on June 28.
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