Charlie Sheen has dropped an extortion case against porn star Capri Anderson.

The 45-year-old actor was suing the adult film actress - real name Christina Walsh - claiming he did not "assault, batter or threaten" her while the pair were in a New York hotel room together last year, after she filed a court case against him, but he has now dropped the charges.

Keith Davidson, Christina's lawyer, revealed she was happy with the result.

He told the New York Daily News newspaper: "She's pleased this litigation is over. She's moved on with her life and other endeavours."

Keith also claimed Christina never even received the copy of the lawsuit, which was filed in November last year.

The former 'Two and a Half Men' actor claimed she had stolen a $165,000 Patek Philippe watch during the eventful night, during which he was found covered in cocaine.

He said at the time: "She fabricated a sensational tale about being assaulted, battered and held against her will, and used that fictional story as a basis for an extortion plot."

Charlie has had an eventful year, releasing a song with Snoop Dogg and moving two porn stars - known as his Goddesses - into his house, as well as waving a machete in public and drinking a concoction known as Tiger Blood.