Homolka, who is believed to be living in Montreal, was investigated after her former employer alleged she had contacted someone with a criminal record and came in contact with children.

Strict restrictions were placed on Homolka following her release from prison last July.

"The Crown's study of the file did not reveal that any criminal act was committed," the Quebec Justice Department said in a statement.

"As a result, no charge will be laid against Madame Karla Leanne Teale Homolka."

Homolka faces up to two years in jail if she breaks any of her conditions.

Homolka has challenged the restrictions, saying they violate her constitutional rights and are unnecessary because she is no longer dangerous.