Magistrate Daniel Thulare said: “From the submissions made by prosecutor Getrude Market the court has accepted that as of now there is not sufficient evidence to put Mr Mbatha to trial.”
“I note the withdrawal of charges by the State against Mbatha and consequently the court orders the release of Mr Mbatha today.”
Earlier rolls of barbed wire were placed around the court and police checked all vehicles entering the parking lot.
Only vehicles from media houses and police cars were allowed to park near the court.
Journalists were told by a court orderly to wait outside the courtroom until they were told by the National Prosecuting Authority when they could enter the court.
Police kept a heavy presence around the court.
Meyiwa, also captain of Orlando Pirates, was killed in Vosloorus, Ekurhuleni, while visiting his singer and actress girlfriend Kelly Khumalo last month.
Two men allegedly entered the house on Oct 26 and demanded cellphones before shooting Meyiwa and running away.
Mbatha, 25, from Vosloorus, previously made a low-key appearance in court on October 31.