The two reporters, Liston Besser and Louie Eroglu from the Australian Broadcasting Channel (ABC), were detained for attempting to interview Najib on Saturday over the $681 million deposited into his bank accounts, which was allegedly transferred from a state fund, EFE news reported.
The police chief of Sarawak, Dev Kumar, said in a statement that Besser and Eroglu will not be charged for obstructing a public servant.
"Police investigation papers were submitted to the Deputy Public Prosecutor on Monday. The next day the police received instructions from the DPP that no charges will be filed against the two," Kumar said.
"Instead they will be deported from the country," he added.
The scandal involving Najib and state investment fund 1MDB (Malaysia Development Bhd) was uncovered by international media last year.
Najib and 1MDB initially denied that such a transfer had occurred.
The government later admitted the existence of the millions in their private accounts but said that they were donation from the Saudi royal family.