A man who was hailed a hero for disarming one of the Bondi Beach shooters in December has had assault charges against him dropped by police.

Ahmed al Ahmed was charged in June with domestic violence common assault, as well as stalking and intimidation, after an alleged incident with his father in March at a home in southwest Sydney. Ahmed denied both charges.

On Wednesday, in a local Sydney court, prosecutors withdrew the charges after it was agreed that Ahmed would abide by an apprehended domestic violence order for 12 months, limiting his contact with his father.

Outside the court, Ahmed, 44, welcomed the development, telling reporters that he was a "free man" and that he hoped for "peace".

Defence lawyer Mohamed Sakr said in court that the order prohibiting Ahmed from assaulting, threatening, stalking or intimidating his father had been accepted without admissions, according to national broadcaster ABC.

Ahmed made global headlines last year after footage emerged of him tackling one of two gunmen who had opened fire during a Jewish event at Sydney's Bondi Beach, killing 15 people.