Dr Mohammad Haneef, who was wrongly implicated on terror charges in Australia [Images], just crossed another hurdle on Friday when the Australian Federal Police dropped its probe into the case.

"At the present time, there is insufficient evidence to institute proceedings against Dr Haneef for any criminal offence," said Australian Federal Police in a statement.

"The AFP has concluded its active inquiries, although some long-standing overseas inquiries are yet to be fully resolved," it added.

Haneef's solicitor Rod Hodgson has been told that AFP had recently informed Attorney-General Robert McClelland and Home Affairs Minister Bob Debus that Haneef "is no longer a person of interest", media reports said in Melbourne.

Haneef's lawyer Hodgson said he conveyed this on phone to his client Haneef, who was extremely happy at the development.

Haneef was unavailable for comment as he has taken up a new job in Dubai. His brother Shoaib told rediff.com that it is has been a month since he left for Dubai and is working over there now.

He has just started over a new life and we are happy that he has settled down finally after undergoing so much stress and pain all these months, he said.

On the latest news regarding the probe being dropped, Shoaib said the family was overjoyed with this development.

I only feel happy for my brother who went through so much. God has heard our prayers and we are very thankful to him for that, he added.

"This would mean that my brother is out of this mess completely and he is a clean man, and the society too should view him in that manner. The entire family had always maintained that Haneef was innocent and he was being targeted unnecessarily," he said, adding, however, this development has only vindicated our stand and proved us all right."

Haneef's family members, however, refused to comment on the future course of action and added that this is a decision that would be taken solely by Haneef himself in consultation with his legal team.

The Australian police had received severe flak for its handling of the case of Haneef, who was kept in detention for three weeks following his arrest at Brisbane airport on July 2 last year in connection with the failed London car bombings, only to be absolved later of terror charges.

A government ordered an inquiry which is underway into the matter, decided last month not to make public the "sensitive" evidence as it could harm diplomatic ties with the UK.

Additional Reportage: PTI