After reviewing new third party evidence in Vice-Admiral Mark Norman's case, they said they were "no longer of the view that a reasonable prospect of conviction exists."

"In particular, the Crown has concluded that it will not be able to prove beyond a reasonable doubt that Mr. Norman's conduct in this case amounted to a serious and marked departure from the standards expected of a person in his position of trust," said a statement.

Norman, who was second in command of the military prior to being relieved of duty in January 2017, had been charged with the criminal offense for allegedly having "illegally disclosed government information to unauthorized parties."

According to court documents, Norman was alleged to have provided sensitive government information to a local shipyard that had been selected by the previous Tory administration to provide the navy with an interim supply ship.

He was apparently concerned that the project would be delayed over objections raised by the shipyard's rivals about a lack of competition in awarding the contract.

Prime Minister Justin Trudeau's Liberals put the project on hold when they came to power in 2015, but eventually decided to proceed with it.

Norman's lawyers argued that the charges were politically-motivated -- raising the risk of blowback for the Liberals ahead of October elections.

At a press conference, defense lawyer Marie Henein said Norman and his family had "been through a great deal."

"There is a supply ship that is operational, (delivered) on time and under budget thanks in part to Vice Admiral Norman. I think it's time (for the government) to say sorry to him," she said.

Norman himself said he was now "ready to go back to work."