Officer David Vareen was shot while responding to a breaking and entering call.
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He did survive the shooting.
Kevin Burnette Johnson was ultimately charged and convicted of attempted murder.
Johnson, 24 at the time, spent more than 15 years in prison for a crime he claimed he didn't commit, according to court documents.
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Earlier this month, a new trial was ordered for Johnson after "serious issues" were raised about the credibility of two key witnesses.
The Durham County District Attorney's Office said Tuesday that it will not re-prosecute the charges.
"The State cannot in good conscience move forward with a re-prosecution of this case," the prosecutor wrote. "The State is of the view that a dismissal of all charges is proper, fair and just."