“The police have not been careless, indefensible or acted incorrectly in any way,” wrote prosecutor Kay Engfeldt, according to the TT news agency.
During an attempted robbery of a jewellery store in Södertälje last Friday, police opened fire on a group of suspected thieves bearing what appeared to be at least one automatic weapon.
One of the suspected thieves was shot by police in the head, and left behind by his accomplices as they made their getaway.
The gunshot victim, a 26-year-old, died as a result of the injuries on Wednesday.
His weapon, which was also left behind at the scene, was later discovered to be just a replica.
Four other people have since been held on remand in connection with the raid.
While an initial probe was opened against the police officer’s actions, the case was dropped on Friday, as the police acted in accordance of the law.
Prosecutor Engfeldt wrote that police “as a rule, don’t know with any high degree of certainty exactly where the bullet will hit”.