"As the state has stated that they withdraw charges against the accused, the accused will be released from custody with immediate effect," the magistrate, whose name was not immediately available, ordered.
The prosecutor did not give reasons for the withdrawal of charges against Thamsanqa Twala in the brief session in the Boksburg Magistrate's Court.
As soon as court proceedings ended, people in the public gallery started screaming and pointing to the magistrate and prosecutor shouting "genoeg is genoeg. Nee Man" (Enough is enough. No man.)
Sympathisers and supporters of Morris's family had arrived early ahead of an expected bail application.
The group of men and women wore T-shirts bearing Morris's face, and the words "Genoeg is genoeg" written above it.
Members of the SA Police Service and Ekurhuleni metro police maintained a strong presence in and around the court.
The Morris family supporters had been allowed into court first after a thorough search by security guards.
Four-year-old Morris died when his parents' Volkswagen Golf was hijacked in Reiger Park, on the East Rand, in July.
Three men approached the car in which Morris, his sister, and parents were travelling, and ordered the family out.
The boy was caught in his seatbelt and was dragged several kilometres along the road as the hijackers drove off. The car was abandoned in Boksburg.