The 27-year-old actress - who is currently undergoing a mental evaluation after being involuntarily admitted to a psychiatric hospital in Los Angeles on Monday, shortly after she was arrested for lighting a fire in the stranger's driveway - will not be prosecuted for trespassing, arson or any other criminal offense.
Law enforcement sources told gossip website TMZ.com that they believe the actress's actions were rooted in mental illness and prosecutors view her conduct as non-criminal.
The police officers who arrested the 'Easy A' star on Monday immediately decided that she need professional help instead of a punishment and secured a 5150 hold.
It was previously reported that Amanda's medical team are planning to ask for the order to be extended for two weeks so that they can properly diagnose her, amid speculation she is displaying signs of schizophrenia.
The 'Hairspray' star was charged with attempted evidence tampering, reckless endangerment and marijuana possession after being arrested at her apartment in New York City on May 23, is due to appear in court again on September 26 in connection with the incident.