Mark Pritchard claims his accuser "concocted a vindictive and outrageous story", and should not have been allowed to remain anonymous.
The Conservative MP was arrested in December after voluntarily attending a London police station.
He was released on bail and when he returned to the station today he was told he would face no further action.
Speaking to the media from the gates of the Palace of Westminster, where Mr Pritchard remained under the protection of parliamentary privilege, the Wrekin MP called for a review of the law regarding anonymity in rape cases, he said: "Sadly as an MP, sometimes you have a target on your back.
Of course, she remains anonymous; the law on anonymity does need to be reviewed and fairness does need to play a greater part in these cases.
"I am now going to go back into the House and continue serving my constituents."
A police spokesman said: "A 48-year-old man voluntarily attended a north London police station on Tuesday, December 2 where he was arrested, following an allegation of rape in central London.
"He returned on bail on January 6 where he was informed he will face no further action as there was insufficient evidence."
Since 1976, people who allege they are the victims of certain sexual offences, including rape,
are automatically entitled to lifelong anonymity once their complaint has been made.