Carse was handcuffed by officers after a celebratory night out with Durham teammates on August 23 and it was later confirmed he had been arrested on suspicion of being drunk and disorderly, before being "de-arrested" after agreeing to depart.
Derbyshire Police said they were investigating an alleged assault in connection with the incident but have now determined no further action will be taken.
In a statement, Derbyshire Police said: "An investigation into reports of an assault in Derby city centre has been closed.
"Officers attended Molly Malones in the Wardwick, Derby, in the early hours of Sunday 23 August. A man was arrested on suspicion of being drunk and disorderly and was then de-arrested after his details were taken by officers."
Subsequent enquiries were made pursuing the allegations of an assault but, after the alleged victim was identified and spoken to, no further action was taken, police said.
The matter is now in the hands of the independent Cricket Regulator, which will assess if Carse has a disciplinary issue to answer to relating to his conduct.
Carse has continued playing for Durham since the episode took place, helping his side win the Division Two title of the Rothesay County Championship, but he has been overlooked by England.
He was immediately removed from the squad ahead of the second Test against Pakistan, then left out of the final match too. While officially considered available for selection for the ongoing white-ball series against Sri Lanka, he was left on the sidelines once again.
Speaking earlier this week, England's limited-overs head coach Brendon McCullum called for his side to be mindful of their off-field responsibilities.
"I've spoken to Carsey a lot and it's the same message – you need to make good decisions off the field that allow you to be able to be the best version of yourself," he said.
"As far as Carsey is concerned, it's a good chance for him now to get his house in order and then push for selection for the next opportunity that arises."
Test captain Joe Root also had his say ahead of the Lord's Test when he described himself as "hacked off" by the growing list of alcohol-related incidents involving England players.
On Carse, he said: "I don't think I'm speaking out of turn in saying he's very upset, very apologetic and understands his actions. I'm sure when he gets his chance, he will say that himself."
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