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The matter went to two separate murder trials with a second jury coming back in October to say it had been unable to reach a verdict.
On Friday, lawyers for the NSW Director of Public Prosecutions told the court they would no longer be pursuing the case.
Under prosecution guidelines, the decision to proceed to a third trial must be made “only in exceptional circumstances”.
Fakhreddine and Lehmann had met at a nearby leagues club and gone back to the latter’s home, where the taxi driver performed oral sex on the German national before the violent attack, jurors heard in September.
Lehmann’s body was found soon after lying face down in his kitchen doorway, with a 2.7kg statuette next to him and covered in blood.
A large cut had been made to the back of his neck and white flecks of plastic were found inside the deep wound, the jury heard.
Fakhreddine’s DNA had linked him to the cold-case crime through swabs taken in 2020.
He was arrested in March 2021 but always denied having anything to do with the murder.
Taking the witness stand at the earlier trial in October 2023, Fakhreddine claimed Lehmann had been killed by home invaders.