Sheets was charged with domestic battery near Tampa, Fla., on Jan 18 after police were called to a home in the area.
The state decided not to prosecute the case after Sheets successfully completed a domestic violence program.
"The Saskatchewan Roughriders were made aware of an incident involving Kory Sheets earlier in the year. As an organization, we have followed the process closely and have been assured the proper steps have been taken," the team said in a statement. "Kory has taken responsibility and participated and completed a mediation course at which time all charges were dismissed. In fairness to everyone involved with this situation, the Saskatchewan Roughrider Football Club will have no further comment on this matter."
Sheets rushed for 1,277 yards and 11 touchdowns last season. He added 517 yards and two touchdowns in receptions.