The 21-year-old Huddersfield man was arrested yesterday afternoon (July 13) in connection with the stabbing outside Palace Studios on Kirkgate in the early hours of Sunday July 1.
A 28-year-old man was found with multiple stab wounds.
The stab victim has since been released from hospital and is continuing to recover from the attack.
The arrested man was released under investigation last night and enquiries into the incident are ongoing.
Detectives are still keen to hear from anyone who witnessed the incident or who has any information that could assist the investigation.
Anyone with information is asked to Detective Constable 6317 Ray Rai at Kirklees District CID via 101 quoting crime reference 13180319548.