Fevola was stood down indefinitely by the Lions while Queensland police investigated an allegation that he exposed himself to a woman in a Brisbane park.
But Fevola returned to the club in October after being cleared of any wrongdoing.
In a statement released on Wednesday afternoon, the AFL said: "Respect and responsibility manager Sue Clark has conducted a thorough investigation of the matter independent of the Queensland police investigation.
"This commenced after the police investigation was completed and involved accessing police evidence from Fevola and the complainant, interviewing Fevola, the couple who made the complaint and a number of other witnesses who were present at the time.
"The AFL has determined that due to insufficient evidence, the matter should not proceed to the AFL tribunal."
