Nathalie Matthews, 38, had alleged Mr Latham had subjected her to sustained emotional and physical abuse, but the court application for the order was withdrawn by consent on Wednesday.
Mr Latham's lawyer told reporters outside Sydney's Downing Centre Local Court it was a good result for her client, who was excused from attending.
"The (apprehended violence order) application has been withdrawn and dismissed," Zali Burrows said.
Mr Latham - who is an independent in the NSW upper house - had repeatedly denied the allegations and has not been charged with criminal wrongdoing.
The dismissal of the application means a three-day hearing scheduled to begin on Wednesday has been vacated.
The MP previously sought to subpoena the billionaire founder of WiseTech Global, Richard White, but that move was abandoned in September.
The local court refused to release court documents detailing allegations against Mr Latham, which are not the subject of criminal charges and remain untested.
Mr Latham had claimed the order was withdrawn as far back as seven months ago but was finally proved right on Wednesday.
"I was due in the Sydney Local Court tomorrow for the latest instalment in the private AVO application against me," he wrote on X in October.
"But it has now been delisted and the application withdrawn … that's the end of that."
A legal win is a welcome change for Mr Latham who has suffered a series of high-profile losses in recent months.
In April, he was hit with a $100,000 fine by the NSW Civil and Administrative Tribunal after it ruled an obscene tweet directed at fellow MP Alex Greenwich constituted sexual harassment.
The Federal Court has also previously ruled that the same tweet was defamatory and ordered Mr Latham to pay $140,000 in legal costs.
No costs orders were made by either party in the AVO withdrawal on Wednesday.
The controversial politician has served as a right-wing independent MP since 2023, when a falling out with Senator Pauline Hanson led to his departure as One Nation NSW leader.
He led the populist party's return to state politics in 2019, 15 years after his failed attempt to lead Labor to federal election victory.
After losing to incumbent prime minister John Howard in 2004, Mr Latham resigned from federal parliament and was later ejected from the Labor party.
He has been embroiled in several scandals during the past year, including taking photos of female MPs without their knowledge, for which he has apologised.
1800 RESPECT (1800 737 732)
Lifeline 13 11 14
Men's Referral Service 1300 766 491
National Sexual Abuse and Redress Support Service 1800 211 028
11°C