Luke Briggs, 35, died eight days after he was arrested in a convenience store car park at Hoppers Crossing, in Melbourne's southwest, in July 2024.
Constable Alexander Papanastassis, 30, and Sergeant James Fitzgerald, 46, were each charged with negligent manslaughter over his death but they fought the charges at a committal hearing.
Melbourne magistrate Patrick Southey on Tuesday determined there was insufficient evidence for the case to go to trial and dismissed the charges.
"The evidence is so weak that the prospect of a conviction is minimal," Mr Southey said.
"It may be the manner in which Mr Briggs was restrained was the substantial and operative cause of death, but we'll never know."
Mr Briggs allegedly became unresponsive during the arrest and the officers performed CPR before calling for medical assistance.
The 35-year-old died in a Melbourne hospital intensive care unit on July 23, eight days after his arrest, surrounded by family.
Photos at the time showed bruising on his arms as he lay in a hospital bed.
In delivering his ruling, Mr Southey referred to the high-profile case of African American man George Floyd in the United States.
Mr Floyd was murdered by a white police officer who was arresting him in May 2020.
His dying words of "I can't breathe" were also said by Mr Briggs, the magistrate noted.
"It seems to me the parallels end there," Mr Southey said.
"There is no comparison to this case where ... the police were doing the best they could.
"It was not a perfect job but the best they could do in all the circumstances."
The magistrate noted Mr Briggs was a large powerful man whose behaviour had been irrational due to methamphetamine use.
"It was an unfortunate, tragic chain of events but in my view, it does not amount to criminal negligence," Mr Southey said.
He awarded costs to Constable Papanastassis and Sergeant Fitzgerald, who have both been suspended from duties since the incident.
Members of Mr Briggs's family were visibly upset as the decision was handed down on Tuesday afternoon.
The family is separately suing the state, accusing the officers of breaching their duty of care and Victoria Police of failing to "properly supervise, control or train their employees, officers and/or agents".
Mr Southey indicated his ruling had no basis on any civil proceedings and the prosecution could still choose to directly indict the two officers on fresh criminal charges.