The CTV building crumpled then burst into flames after the 6.3-magnitude tremor on February 22, 2011, killing those trapped inside, including 65 foreign students mainly from Japan and China.
After a four-year investigation, police said they did not have enough evidence to proceed with negligent manslaughter charges against the engineers responsible for the building.
"The evidence available is not sufficient to provide a reasonable prospect of conviction in court," police said in a statement.
A royal commission concluded in 2012 that the six-storey, 1980s-era office block was so badly designed it should never have received a building permit.
It had also been damaged in two quakes which preceded the deadly February tremor, something the local council failed to pick up, allowing it to remain occupied.
The building "pancaked" within 20 seconds of the quake hitting and was engulfed in an inferno so intense that forensic experts had to use DNA testing to identify the remains of many victims.
"We are acutely aware that there will be disappointment with this decision, particularly for the families and friends of those who died in this tragedy," they said.
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