Detective Chief Inspector Paul Barton from Hampshire Police said: "Information regarding the welfare of a female from the Portsmouth area was passed to us by a third party on August 5 this year.
"Contact with the alleged victim was subsequently made and officers carried out a full and thorough investigation into the circumstances and submitted a file to the CPS."
A CPS spokesman said: "The CPS received a file of evidence from the Hampshire Constabulary on December 8 concerning allegations of sexual assault involving Michael Hancock MP and a constituent.
"The allegations centred on a series of visits to the home of the constituent by Mr Hancock between March and June 2010. Mr Hancock has stated these visits were made in his role as an MP and not for any personal purpose.
"After thoroughly reviewing the file, we have concluded there is insufficient evidence for a realistic prospect of conviction as there is no evidence to disprove Mr Hancock's account of the nature of the visits.
"We have written to the complainant to explain our decision and offered her a meeting."
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