Detectives are no longer investigating an allegation of rape.
The alleged incident took place in St James's Street, Brighton, on Wednesday.
Detective Inspector Ian Still said: "We received a report of a woman being raped after she was pulled into New Steine community gardens.
"We take all such reports seriously and were quick to respond. However, an extensive investigation has led us to conclude that this offence did not take place.
"We appreciate the public's support in this inquiry and we will always investigate fully any report of sexual offences."
A 24-year-old woman from Brighton has been arrested on suspicion of perverting the course of justice. She has been bailed to December 9.
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