The 31-year-old had been arrested on suspicion of conspiracy to murder but has now been released.
The third person arrested over the Christmas Eve pub shooting of Elle Edwards has been freed on bail.
The man, 31, from Tranmere, had been held on suspicion of conspiracy to murder but has now been released pending further inquiries.
Two other people have also been held over her death but no-one has been charged.
Ms Edwards, 26, was shot a week ago outside The Lighthouse in Wallasey, Wirral.
Up to 20 members of her family attended prayers for her at a catholic church on Saturday.
They went to prayers at Holy Apostles and Martyrs in Wallasey which was open from 14:00 to 17:00 GMT.
Prayers were said and candles lit for Ms Edwards and for the community to “come together”.
Two other churches – Wallasey Village URC and St Nicholas – were also opened so people could pray for Ms Edwards and her family.
The Holy Apostles and Martyrs’ Canon Philip Moor, whose niece and nephew were also at the pub at the time of the shooting, said the community was “extremely shocked”.
He said: “It is saddened, devastated but I would say the community is hurting at the moment.
“We want to reach out to start the process of healing.”
Ms Edwards’ father has said she was “the most beautiful and bright star” as police appealed for information to find those responsible for the attack.
She died after several shots were fired towards the entrance of The Lighthouse at about 23:50 GMT on 24 December.
Merseyside Police appealed for information about a dark-coloured Mercedes in the pub car park that was used in the attack.
Four men were also injured including a 28-year-old who was critically hurt but whose condition is no longer life-threatening.
Another Tranmere man, aged 30, who was previously arrested on suspicion of murder and attempted murder, has been recalled to prison.
A 19-year-old woman from Rock Ferry, who was held on suspicion of conspiracy to murder, has been released on bail.
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