A suspect in a murder outside an Annex bar turned himself into police and has seen the charges against him withdrawn.

On Wednesday, police held a news conference in which they said Jeffrey Larsen, 28, of no fixed address was wanted for first-degree murder and attempted murder.

"On Wednesday ... in the early evening, Jeffrey Larsen surrendered to police at 14 Division," police said Thursday in a news release.

"After interviewing Jeffrey Larsen and further investigation, the charges against him have been withdrawn."

Police are still looking for Marvin Jarrett, 22, of no fixed address on charges of first-degree murder and attempted murder.

Jarrett is described as black, 6'2", 180 lbs., with black hair in cornrows.

He is being sought in connection with the July 25 shooting death of Sebastien Herrera, 23.

The incident occurred in an alleyway behind Ye Olde Brunswick House, a popular pub on Bloor Street West in the city's Annex neighbourhood.

He was at the pub with his girlfriend and several of their friends when the couple decided to walk to their car, parked at the back of the building, for a cigarette.

Two men in a car approached the couple as they were making their way back to the pub. Police say they were threatened by the passenger of the vehicle. The suspect was carrying a gun when he ordered Herrera to give up the crucifix necklace he was wearing around his neck.

Herrera was shot while he was on the ground. He was rushed to hospital but was pronounced dead soon after arriving. He became Toronto's 31st homicide victim of 2009.

His girlfriend was not injured.

Two suspects fled the scene in a car.

A citizen who heard news reports about the murder saw the car in a parking lot and reported its location to police.