The Crown told Court of Queen's Bench in Fort McMurray that there is insufficient evidence to pursue a case against Michael Orr of the Fort McKay First Nation.
The 45-year old was charged in June 2011 after allegations that he had sent explicit text messages and photographs to two people.
Orr was suspended from the band in light of the charges.
Federal Court ruled the charges didn't relate to his public office and reinstated him pending the outcome of the case.
Neither Orr nor band officials were available for comment.