Kieron Coyle, 39, from Killygordon, was charged with raping and sexually assaulting a woman in the Galliagh area of Derry last December.
However the Public Prosecution Service in Derry withdrew the case against the taxi-driver this morning.
Mr Coyle, of Forest Park, has told how he has been threatened by Dissident Republicans after the allegations.
The Donegal man spent five days in police custody after his arrest but had always maintained his innocence.
Mr Coyle told Donegaldaily that his life has been ruined.
He is demanding to know why he has been forced to go through hell for four months while police waited for DNA results.
Donegaldaily will carry a full interview with Mr Coyle shortly.