Vytas Kapociunas, 71, faced a trial in the ACT Supreme Court last December on three counts of engaging in sexual activity other than sexual intercourse with a child aged under 16.

The jury reached unanimous decisions of not guilty on the first two charges, but were unable to reach a verdict on the third.

The jury was discharged after delivering their verdicts.

A spokesperson for the Commonwealth Director of Public Prosecutions confirmed this week the third charge on which the jury was unable to reach a verdict had been discontinued.

Mr Kapociunas was previously cleared of three charges of sexual intercourse with the girl by a separate jury in July.

The jury was unable to reach a verdict on the lesser charges, leading to a retrial in December.

The alleged incidents were said to have occurred in a room in his Madrid home in 2014.

Mr Kapociunas, a well-known sculptor and painter, denied the allegations, saying he had only ever blown a raspberry on the girl's stomach while the pair were alone together.

Following the jury's verdict in December, Mr Kapociunas left court holding hands with his wife of 33 years, Jane Hardy, and made no comment.

Ms Hardy stepped down as ambassador to Spain on November 3, 2014, a month after her husband was first charged and less than two years into a three-year appointment.