The two were among five men -- four soldiers and a civilian -- who were arrested earlier this week over a plot linked to a banned far-right group National Action.
"No further action will be taken against the two men, both aged 24, from Northampton and Ipswich," West Midlands Police said.
Detectives have been granted more time to question the remaining three who include a 22-year-old from Birmingham, a 32-year-old arrested in Powys and a 24-year-old from Northampton, the police said.
The men are being held on suspicion of being concerned in the commission, preparation and instigation of acts of terrorism under the Terrorism Act 2000; namely on suspicion of being members of a proscribed organisation.
Three of the servicemen are believed to be from the Royal Anglian Regiment.
"The arrests were pre-planned and intelligence-led; there was no threat to the public safety," said a West Midlands Police spokesperson.
The police have not given further details of the men's activities but the "commission, preparation and instigation" of terrorism could include directly planning an attack, joining a prohibited group or giving effect to that intention.
National Action, a British far-right group, was banned last year by UK Home Secretary Amber Rudd.
"National Action is a racist, anti-Semitic and homophobic organisation which stirs up hatred, glorifies violence and promotes a vile ideology, and I will not stand for it. It has absolutely no place in a Britain that works for everyone," the minister had said at that time.
Its activities and propaganda materials are particularly aimed at recruiting young people, it says.
Being a member of or inviting support for a proscribed organisation is a criminal offence carrying a sentence of up to 10 years in prison under the British laws.
National Action describes itself as a "national socialist youth organisation" and says its movement is aimed at the "broken right-wing".
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
