The Met had received material in August about Princess Diana and Dodi Al Fayed’s deaths in a 1997 Paris car crash, which reports suggested related to claims the military was involved.
However, police said that having conducted a “scoping exercise” there was no basis to open a criminal investigation.
A 2008 inquest found the couple had been unlawfully killed.
The car crash in a Paris tunnel occurred partly due to the “gross negligence” of the driver, the inquest ruled.
Reports in several British Sunday newspapers in August had suggested the new material had been passed to the police by an Army source.
A statement from the Met on Tuesday said its assessment included “taking statements from a number of individuals and reviewing records”.
It said the investigating officers were given “unprecedented access” to Special Forces Directorate records.
The statement continued: “Every reasonable line of enquiry was objectively pursued in order to fully evaluate any potential evidence.
“The final conclusion is that whilst there is a possibility the alleged comments in relation to the SAS’s involvement in the deaths may have been made, there is no credible evidence to support a theory that such claims had any basis in fact.
“Therefore the MPS are satisfied there is no evidential basis upon which to open any criminal investigation or to refer the matter back to HM Coroner.”
Dodi Al Fayed’s father, former Harrods owner Mohamed Al Fayed, was “disappointed but not discouraged” by the outcome, his solicitor Simon McKay said.
He called the scoping exercise “the latest whitewash in a 16-year cover up”.
Princess Diana, the former wife of the Prince of Wales and the mother of princes William and Harry, was 36 when she died alongside Dodi Al Fayed, 42.
Henri Paul was driving when their hired Mercedes crashed into a pillar in Paris’s Pont de l’Alma tunnel.
The crash happened after the couple had left the Ritz Hotel and were pursued by paparazzi on motorbikes. Dodi Al Fayed’s bodyguard, Trevor Rees-Jones, was the only survivor.
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