Police are now stressing that a town centre is a safe place at night after a woman withdrew allegations that she was raped.
The offence had allegedly taken place in Banbury in the early hours of October 13.
The 30-year-old woman claimed she had been dragged by the hair from St Mary's Church in Horsefair to an alleyway off North Bar, by a black attacker.
Supt John Liversidge, crime and operations manager for Northern Oxfordshire Police, said: "After a detailed investigation and interviews, we are now satisfied that no crime was committed."
He said: "The allegation has now been withdrawn."
The police probe included examination of CCTV film from the night.
Supt Liversidge added: "In the light of this, I want to re-assure the public that Banbury is a safe place to be - day or night. Any fear of being the victim of a random assault, sexual or otherwise, far outweighs reality."
He said: "Reports of rapes and other sexual assaults are treated very seriously and are sympathetically and thoroughly investigated."
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