The woman who made the allegations has, through her lawyer, dropped her lawsuit in the civil case, writes Variety, referring to court documents.
Jay-Z describes in an Instagram post the suspicions directed at him as "fabricated and despicable".
"This civil case lacked foundation and would never have led anywhere. The fictional story they created would have been laughable if it weren't for the seriousness of the allegations", he writes.
"The trauma that my wife, my children, loved ones, and I have endured can never be dismissed", he continues in the statement, published on his company Roc Nation's Instagram account.
The woman had previously claimed that she was raped by Jay-Z together with Combs in connection with an after-party during the MTV Video Music Awards 2000.
Combs has been detained in Brooklyn since he was arrested on September 16 last year, accused of a long list of sexual assaults against over 120 people.
The trial against him begins on May 5.
