Sylvester Stallone. Picture: AP

Sylvester Stallone won't be prosecuted over a historic rape allegation due to a lack of evidence and because a police report was made outside of the statute of limitations.

The 'Expendables' actor was reported to police in Santa Monica by a woman who claimed they had had a consensual relationship in 1987, but he has assaulted her in 1987 and 1990.

Though the unnamed woman provided witnesses, who she said she'd confided in at the time, the Los Angeles' District Attorney's office said they did not corroborate her account and they were not able to find any other evidence to back up her claims.

The case was rejected due to insufficient evidence, and because it falls well outside the statute of limitations.

At the time of the woman's original allegation, the 'Rocky' star's lawyer, Marty Singer, said the 72-year-old actor "categorically disputes the claim".

And the actor's spokesperson, Michelle Bega, claimed the events "never happened".

She said: "This is a ridiculous, categorically false story. No one was ever aware of this story until it was published, including Mr. Stallone. At no time was Mr. Stallone ever contacted by authorities or anyone else regarding this matter. It never happened."

When the story was first reported, it was claimed that a police report was filed at the time of the alleged incident, but that the woman did not want to press charges because she was scared and humiliated by the ordeal, and signed a "no prosecution" form.

It was previously claimed the veteran actor planned to take legal action against his accuser over her allegations, which he branded "ridiculous" and "false", though it's not known if that's a course of action he still plans to take now the case has been dropped.