
A spokesman for the North East Counter Terrorism Unit (NECTU) confirmed that the man, from the Fir Vale area of Sheffield, was released by officers this afternoon.
The man was arrested on Friday night, after officers raided a house and a business premises in Firth Park.
A spokesman for the NECTU, which covers South Yorkshire, said: "We would like to reassure the public that public safety remains our priority at all times. Extensive enquiries have satisfied the investigation that there are no grounds to charge him with any offences."
Searches of the house and business premises raided by officers at 11pm on Friday have now been completed.
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Two men arrested following raids carried out on December 19 as part of the same investigation have been charged with terrorism offences.
Farhad Salah, 22, of Brunswick Road, Burngreave, Sheffield and Andi Sami Star, 31, of Sheffield Road, Chesterfield, are accused of engaging in the preparation of an act of terrorism.
Both men have been remanded in custody and are due to appear before the Central Criminal Court in London on January 19.
A 36-year-old man from Burngreave is still being questioned.
A 41 year old man, from Meersbrook, Sheffield, was released without charge.