The disturbing audio footage, which was published by The Sun on Sunday newspaper, appeared to show 24-year-old Dan accusing ex-girlfriend Megan Tomlin of trying to break up their family.
In the clip, a man - purported to be the TOWIE star - then threatened to stick a knife in Megan if she ever had sex with another man.
He then appeared to add that she was "dirty" and told her to “go f**k yourself” - all whilst he was allegedly holding his baby son, Teddy, on his lap.
The footage was seemingly recorded whilst EastEnders star Jacqueline Jossa was pregnant, as Megan could be heard saying that Dan had already moved on ‘and gotten another girl pregnant’.
However Dan seemingly denied his relationship with the Lauren Branning actress, who gave birth to his daughter, Ella Rose, on 15th February.
Whilst it was confirmed that Dan was being investigated over historic domestic abuse claims, police have now released a statement insisting the reality star will NOT face further police action over the tape.
A spokeswoman for Essex Police told The Mirror: "A 23-year-old man from Barking will face no further police action in relation to this matter."
They also added that there is "no suggestion" the audio tape was leaked by an officer.
Meanwhile, Dan has been suspended from The Only Way Is Essex following the tape being leaked to the public.
A source said: "We are speaking to Dan about this incident, and in the meantime he will not be taking part in filming."