The former CEO's lawyer Leif Gustafson confirmed the news in a statement seen by the TT news agency just before 9am.
The bank initially said it was “time for a new leadership and a new CEO who can take Swedbank to the next level”. However it swiftly reported Wolf to Swedens Financial Supervisory Authority after identifying transactions that it said “can be assumed to” constitute criminal offences.
Gustafson has previously told Swedish media that the allegations were linked to the purchase of shares in Oniva Online Group, which had loans in Swedbank.
Wolf has always denied insider trading and accused his former colleagues of “smear campaign”.
“I am relieved it has been proved that I am completely innocent of the accusations brought against me, by the fact that the investigation was so quickly dropped. I have been sure the whole time that I have always followed all laws and regulations, which has now been confirmed by the prosecutor,” he said in a statement on Wednesday.
“It feels good to be able to put this story behind me and I'm going to look forward, full of confidence, to what the future has to offer.”