CHESIRE: Reality TV star Kerry Katona will face no further action following her arrest on suspicion of assaulting her accountant, police said.

Katona, 29, was arrested in August following an incident in Warrington, Cheshire, in which David McHugh was allegedly attacked.

A spokeswoman for Cheshire Police said: "Following an investigation by Cheshire Constabulary and advice from the Crown Prosecution Service in relation to an allegation of assault that occurred in Warrington on 26 August, no further action will be taken in respect of the 29-year-old female who was arrested in relation to the incident."

The mother-of-four, from Wilmslow, Cheshire, spent several hours in custody following her arrest, which also involved allegations of committing criminal damage and a public order offence. It took place in the same week that she was cautioned for possessing cocaine.

The former winner of ITV's I'm A Celebrity...Get Me Out Of Here! hit the headlines in August when a national newspaper published a video apparently showing her snorting cocaine in the bathroom of her home. Katona was dropped as the face of frozen food chain Iceland following the revelations.

She fled the country for a family holiday in Tenerife but arranged to meet police at her local station upon her return. The caution followed Katona's public apology for her drug use through a national newspaper.

The former Atomic Kitten singer, who has endured a long and public battle with alcohol and drugs as well as a rollercoaster romantic life, fronted Iceland's advertising campaigns for four years.

An interview with Katona on This Morning last October earned her notoriety as she slurred her words and appeared confused. She later said this was due to medication she was taking for her bipolar disorder.

She has been the subject of several reality TV shows on MTV, most recently Kerry Katona: What's The Problem?, charting her attempt to understand and come to terms with her mentalillness.

Losing the six-figure Iceland contract has not helped her financial troubles - last August she was declared bankrupt after failing to pay off a £417,000 tax bill and in May this year she told GMTV that she was "skint".