The two, the editor and guest editor of the Clare College student magazine, had been questioned by police after an issue of the magazine dedicated to satirising religion appeared.
The magazine consisted mostly of a critique of the New Testament, but also featured several criticisms of Islam, and, most controversially, a reproduction of one of the infamous Jyllands Posten cartoons of Mohammed.
In a statement, Cambridgeshire police said: ‘The police casefile on the publication of material in the Clare College magazine was considered by the CPS but a decision was taken not to prosecute. The students involved in the publication have been offered words of advice by police.’