Mbappe visited Sweden on October 10 during an international break after he was omitted from Didier Deschamps' France squad ahead of two UEFA Nations League fixtures.
It was reported at the time by Swedish media that the 25-year-old was seen in a nightclub in Stockholm and he was subsequently linked to the allegations involving an incident at The Bank Hotel.
Police allegedly responded to an accusation of rape and sexual molestation at the same hotel where Mbappe stayed, and the France international was deemed a 'reasonable suspect'.
Mbappe labelled the reports as "fake news" on social media, while the player's entourage categorically denied the reports in a statement to AFP, which read: "These accusations are completely false and irresponsible, and their propagation is unacceptable."
Sweden's prosecution authority announced on October 15 that it was investigating an alleged incident that occurred at a hotel in Stockholm, without mentioning the suspect by name.
Rape probe allegedly involving Mbappe "closed"
On Thursday, lead investigator Marina Chirakova issued a statement confirming that the investigation has now been dropped due to a lack of evidence.
"During the course of the investigation, there has been a designated person suspected on reasonable grounds of rape and two cases of sexual assault, but my assessment is that the evidence is not sufficient to proceed and the investigation is therefore closed," said Chirakova.
"The designated person has not been notified of suspicion of a crime."
In an interview for French TV station Canal Plus last Sunday, Mbappe stated that he was "surprised" by the reports of him being the subject of a rape investigation, adding that he had not been contacted by Swedish authorities.
"These are things that come into your life like that, you can't see them coming," said Mbappe. "It's just incomprehension. I don't think it weighed on me, in the sense that I have never considered myself involved."
Mbappe joined Real Madrid in June on a free transfer following the expiration of his contract at Paris Saint-Germain, and he has since made 22 appearances for the Spanish giants in all competitions, scoring 12 goals.
The forward scored the opening goal in Real Madrid's 3-2 Champions League win over Atalanta BC on Tuesday, but he was forced off in the first half with a muscle injury.
Written by
Oliver Thomas