The State Attorney's Office said Wednesday the victim's identification of McIntyre as the suspect was questionable, and prosecutors planned to file paperwork to formally drop the charge.
Another possible suspect has been arrested in a similar case, police said.
McIntyre was arrested last month on accusations that he fondled himself outside a Port St. Lucie woman's home about 100 miles north of Miami. The incident occurred in March, McIntyre had been free on $10,000 bond.
He has denied the charge. He has said he was out riding his bike in the area as part of his regular workout on the day he was detained by police, and the victim identified him as the suspect.
"I just want to say that I'm happy that my name has been cleared today," McIntyre said Wednesday after a team practice in New York. "I have maintained my innocence all through this process, and I'm just glad it's out of the way.
"I'm sorry for the embarrassment to my family and to the Bills, and now my focus is on training camp. And that's all I have to say."
In later interviews, the woman said she never saw the suspect's genitals, and couldn't positively identify McIntyre as the culprit.
On Monday, authorities arrested a man accused of exposing himself on June 2 in the same area where McIntyre had been riding his bike, said officer Thomas Nichols of the Port St. Lucie Police Department.
McIntyre's agent, Brett Tessler, called the charge "absurd and utterly ridiculous."
"They never should have been filed in the first place and Corey, his family, and the Bills never should have been subjected to this kind of pain and embarrassment," Tessler said Wednesday.
Police acknowledged the only similarities between McIntyre and the latest suspect arrested is that they are both black and have dreadlocks.
"They are significantly different in physical shape," Nichols said. The new suspect weighs about 150 pounds, while McIntyre is nearly 260 pounds, he said.
McIntyre, 30, preparing to enter his fifth NFL season, was signed by the Bills on Sept. 30, and appeared in 11 games, including two starts. He was used primarily as a blocker and also saw playing time on special teams.
McIntyre has also played with Cleveland, New Orleans and Atlanta.