Sheen claimed Capri Anderson locked herself in the bathroom of the Plaza Hotel because she had taken one of his watches valued at $165,000. His lawsuit sought reimbursement.
Anderson told police the actor put his hands around her throat during the raucous evening in late October, but she managed to slip away.
Sheen sued Anderson for attempted extortion in November after she recounted her version of events on "Good Morning America."
Court records show Sheen's attorney were granted a dismissal of the case without prejudice on Friday, which means the actor could re-file.