Reid had been due back in the Victorian Supreme Court on Thursday to continue his challenge against the AFL who had charged him, Essendon coach James Hird, senior assistant coach Mark Thompson and football manager Danny Corcoran with bringing the sport into disrepute.
Hird, Thompson and Corcoran all accepted their sanctions, but Reid chose to take his case to court.
In a statement issued on Wednesday, Reid said he shared the AFL's concerns over the circumstances of the supplements saga.
Reid said the failures of Essendon's high performance unit had led to him being marginalised by those in control of the supplements program.
"I support the stance taken by the AFL and the AFL Medical Officers Association in requiring appropriate governance at club level (particularly in terms of "sports science"), including a hierarchy of control which ensures a club doctor is the key person with the responsibility within AFL clubs for the health, welfare and safety of the playing group," said Reid.
Reid plans to return to his position as Essendon's senior medical officer in January after taking a period of leave.
The AFL said it accepted Reid's position, prompting it to withdraw all charges against him without penalty.
Hird was suspended for 12 months for his role in the supplements scandal, with Corcoran suspended for four months and Thompson fined $30,000.
The AFL also banned Essendon from participating in the 2013 finals series, fined it $2 million and imposed draft sanctions on the club for the next two years.
The Australian Sports Anti-Doping Authority is continuing its investigation of Essendon's supplements program.