The office of MLB Commissioner Bud Selig and the Major League Baseball Players' Association said in a joint statement Rodriguez has dropped his legal actions filed last month against both organizations.
Rodriguez sued MLB and the union after being slapped with a season-long suspension for using performance-enhancing drugs, allegedly obtained from the now-shuttered Biogenesis clinic in Miami.
"We have been informed that Alex Rodriguez has reached the prudent decision to end all of the litigation related to the Biogenesis matter," MLB's statement read.
"We believe that Mr. Rodriguez's actions show his desire to return the focus to the play of our great game on the field and to all of the positive attributes and actions of his fellow Major League Players. We share that desire."
"Alex Rodriguez has done the right thing by withdrawing his lawsuit. His decision to move forward is in everyone's best interest," the MLBPA added.
Arbitrator Fredric Horowitz reduced the star third baseman's original 211-game suspension to 162 games Jan. 11, effectively banning him for the 2014 season.
He sued two days later in a last-ditch bid to overturn the sanction.