A WOMAN arrested after police closed an investigation into an allegation of rape has been released from custody.

The woman in her 30s was held by Cleveland Police on Friday. 

It follows claims a woman was bundled into a car by two men, along with her young child, and raped at a secluded location, near Redcar, in March.

A major investigation was launched with officers describing it as a “horrendous incident”.

On Friday police said they were no longer investigating an allegation of rape and that a woman had been arrested on suspicion of wasting police time.

This morning an update was released.

"A woman aged in her early thirties arrested on suspicion of wasting police time on Friday 7th April has been released from custody with no bail conditions," said a spokeswoman.