The Dec. 1, 2002, fight at the hotel left Gallagher with several broken teeth, and police said at the time that he had kicked an officer outside the hotel's nightclub.
Anton Winkler, a spokesman for Munich prosecutors, said contradictory statements by those involved left authorities unable to clearly establish who started the brawl.
"We have closed the investigation against the payment" of $65,200, he said. Gallagher, 32, had been under investigation on suspicion of bodily harm.
Gallagher and four other members of Oasis and the British band's entourage were detained briefly for questioning following the fight with other patrons at the hotel disco. On their Web site, the band called the fight "an unprovoked attack" on them.
Hotel security staff separated the two sides and asked them to leave the nightclub, calling police when the fight resumed outside the entrance.