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A 12-year-old girl accused of killing a woman in Melbourne's inner west will no longer face a charge of murder.

Prosecutors today applied to withdraw the charge against the girl but did not give a reason why.

The magistrate withdrew and struck out the charge of murder. She is not facing any other offences.

The girl, who cannot be identified for legal reasons, was accused of fatally stabbing a 37-year-old woman at Footscray in November.

A psychiatrist was assessing the child's age of criminal responsibility, also known as doli incapax.