The 34-year-old American, who spent nine seasons with San Francisco before joining Houston in 2023, was arrested in August for violating terms of his prior release following a June arrest for allegedly assaulting and threatening a woman.
But the grand jury in Montgomery County, Texas, did not find probable cause that a criminal offense occurred so no case against him will go ahead.
"I can finally move forward," Ward told KPRC-TV in Houston after the judgment.
Ward was placed on the NFL commissioner exempt list by the league after his second arrest in three months in August.
That prohibits him from attending Texans practices or games and his case remains under review by the league.
The commissioner exempt list is a status for players available to clubs in unusual situations, with time on the list undefined and eventually determined by NFL commissioner Roger Goodell.
Ward had been recovering from a foot injury and not practising with the team during pre-season training camp.
Last season, Ward made 48 tackles and two interceptions for the Texans in 10 appearances, all starts.
