The 24-year-old footballer, who recently completed a world-record £80 million transfer from Manchester United to Real Madrid, was badly shaken in the accident near Manchester Airport in January but escaped uninjured.
Police launched an investigation after the Portuguese winger's brand-new Ferrari 599 GTB
was written off when it hit the concrete wall of a tunnel.
Today it emerged there was insufficient evidence to launch any prosecution.
A police source said: "Ronaldo said he simply lost control of the car and there were not enough independent witnesses to prosecute him for any driving offence."
No other cars were involved in the crash, although Ronaldo's former United team-mate Edwin van de Sar was following in his Bentley car.
The accident happened at 10.20am on the A538, which runs under Manchester Airport.
Both players were questioned by the roadside and Ronaldo, who police said had been "fortunate" to escape unhurt, was also breathalysed in line with standard procedure – but the test proved negative.
It was initially thought the accident may have been caused by the car's ceramic brakes being damaged in an initial impact with the kerb inside the tunnel, but this was later denied by Ferrari who said they were working "perfectly".
A spokesperson for Greater Manchester Police said: "No further action will be taken against the driver of a Ferrari 599 GTB, which collided with a wall on the A538 Wilmslow Road on Thursday 8 January 2009."
The airport is currently pursuing an insurance claim for the £20,000 damage caused to the tunnel wall.