It said Neil Wallis would not face prosecution because there was insufficient evidence.
He had hired a former News of the World executive as an adviser (Neil Wallis, who has been arrested).
The BBC understands the woman to be Amy Wallis, daughter of Neil Wallis, and that she works in a civilian non-operational role.
Metropolitan Police Commissioner Sir Paul Stephenson has resigned, having faced criticism for hiring former News of the World executive Neil Wallis as an adviser.
BBC: Hacking: Miliband and Clegg seek media ownership limits
Only one, he argued, had been seen to hamper the work of those who'd appointed him and that was Neil Wallis, taken on by the Met.
Neil Wallis, a former executive editor of the News of the World, said the press was honouring the spirit of the Leveson report but wanted to prevent politicians having a say in regulation.
BBC: Leveson report: Newspapers reject press regulation plans
On July 14th, the same fate befell Neil Wallis, who had been the deputy editor first of the Sun and later of the News of the World, where he rose to become executive editor.
Sir Paul resigned in July after facing criticism when it emerged the Met hired former News of the World executive Neil Wallis - who has been questioned by police investigating hacking at the paper - as an adviser.
Sir Paul says he quit because of the speculation and accusations relating to the Met's links with senior News International figures and, critically, the decision to give a PR contract to former News of the World executive Neil Wallis.
Former News of the World executive editor Neil Wallis told the BBC that before the Leveson Inquiry he would have published the pictures because it was in the public interest, but the inquiry had had an adverse effect on the press.
Update 0936 BST: Assistant Commissioner John Yates was the man tasked with carrying out "due diligence" before the Metropolitan Police awarded a contract to the firm run by Neil Wallis, the former Deputy Editor of the News of the World in September 2009.
One option Boris was considering was an inquiry into the Met's links with the News of the World and former executives of the paper like Neil Wallis by another police force, HMIC - the inspector of constabulary - or the IPCC - the Independent Police Complaints Commission.
Here's one: why is it not a resignation matter to take on Andy Coulson, formerly of the News of the World, as your press adviser when it is a resignation matter to take on Neil Wallis, formerly of the News of the World, as your press adviser?
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