"The decision is based on an inability to prove (a) crime beyond a reasonable doubt," said Lynn Kimbrough, spokeswoman for Denver District Attorney Mitch Morrissey.
Kimbrough announced the decision in an e-mail but did not elaborate. She did not immediately return a phone message.
A 37-year-old woman filed a complaint on Oct. 18 alleging Hodge, 21, tried to sexually assault her at his condominium, police said.
Nuggets general manager Kiki Vandeweghe said the team was "very pleased."
"You're talking about a kid who has a spotless record, never been in any trouble of any type," Vandeweghe said. "This hurts him."
Hodge's attorney, Rick Kornfeld, did not immediately return a phone message. He has called the allegation false and baseless.
Hodge, a former North Carolina State guard, was the 20th overall pick in June.
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