Los Angeles: New York rubbish truck driver Felipe Chairez, who drank beer before the Central Park West bicycle crash that killed Australian tourist Madison Lyden, has walked out of court with $US1000 in fines, after prosecutors dismissed the main charge.

Madison Lyden was on the trip of a lifetime before tragedy struck in New York. Credit:Facebook

Assistant District Attorney Anne Siegel told a hearing in Manhattan on Tuesday "the evidence is insufficient" to prove beyond a reasonable doubt a charge of operating a motor vehicle while intoxicated against Chairez.

Witnesses and video confirmed Chairez drove his truck in his lane, within the speed limit and in a reasonable manner, she said.

"All known eyewitnesses, including the victim's friend who was cycling close behind her at the time she was killed, were spoken to," Siegel said.