Jai Davis (30) died in a prison cell in February 2011 from a suspected drugs overdose.
A review into evidence given at an inquest last year found there was "no new evidence that would give rise to any criminal liability which could lead to a prosecution", Inspector Steve McGregor of Southern District Police said today.
"The Crown has completed a review of the evidence presented at the coronial hearing in December last year and also a review of all previously available evidence," Mr McGregor said.
"The review found that the evidence fails to meet the standards required by the Solicitor-General's prosecution guidelines and that no charges against any individual should be laid."
Mr Davis' family have fought for a prosecution in relation to his death, with his mother Victoria Davis telling the coroner's inquest in December that Department of Corrections staff had failed her son in their duty of care.
She told the court she was concerned that some prison staff had been "so indifferent to his wellbeing" that he had "unnecessarily died".
Mr Davis had drugs inside him when he went into the Otago Corrections Facility as a remand prisoner in February 2011.
Although Corrections staff knew that from an intercepted phone call, he was placed alone in an at-risk cell and did not receive medical help. He died in the cell two days later.
Corrections chief executive Ray Smith said the department acknowledged the decision of the police not to lay charges in relation to Mr Davis' death.
"The department is now awaiting the Coroner's findings following the inquest into Mr Davis's death that took place late last year."
The department had implemented all recommendations arising from its own reviews and had met with Mr Davis' mother to formally apologise for aspects of his care that fell below the standard expected, Mr Smith said.