Officers were called to Lizard Lane Caravan Park, South Shields, at 11.41am yesterday, following reports of a man making threats.
A 56-year-old man was arrested on suspicion of making threats to kill.
Witnesses, yesterday, told how armed police came onto the site and a man was led away in handcuffs.
Today, police have confirmed the man has been now been released with no further action.
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A spokesman for Northumbria Police said: "The man has been released with no further action. There is no evidence to suggest any criminal offence has taken place."