A Sydney nurse sacked over her alleged inflammatory rhetoric in an online video is no longer accused of threatening to kill Israeli patients after prosecutors dropped a charge.

Sarah Abu Lebdeh, 27, and Ahmad Rashad Nadir, 28, sparked widespread criticism when a video was released of the pair saying they would refuse to treat Israeli patients and appearing to threaten violence towards them.

The pair were working a night shift at Bankstown-Lidcombe hospital at the time of the alleged threats, made during a video chat with Israeli influencer Max Veifer, who shared the footage online.

Abu Lebdeh was charged with threatening violence to a group and using a carriage service to menace, harass or cause offence.

A third charge, of using a carriage service to threaten to kill, was withdrawn by prosecutors on Tuesday in Downing Centre local court.

Sign up: AU Breaking News email

Abu Lebdeh is yet to enter pleas to the remaining two charges. She is on bail under strict conditions, barring her from using social media or leaving the country.

Israeli content creator Max Veifer (right) and the two nurses from Bankstown hospital Ahmad Rashad Nadir and Sarah Abu Lebdeh. Photograph: @maxveifer

Her former colleague Nadir was hospitalised after the video emerged before being charged in March with using a carriage service to menace, harass or cause offence, and possession of a prohibited drug.

He pleaded not guilty to possessing morphine, which he will fight at a hearing at Bankstown local court in October, and is yet to enter a plea to the other charge.

Nadir previously told reporters the incident was a “big mistake”, describing the comments as a joke gone wrong and apologising for any offence caused.

skip past newsletter promotion

Sign up to Breaking News Australia

Get the most important news as it breaks

Privacy Notice: Newsletters may contain information about charities, online ads, and content funded by outside parties. If you do not have an account, we will create a guest account for you on theguardian.com to send you this newsletter. You can complete full registration at any time. For more information about how we use your data see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.

Outside court, Nadir’s lawyer said he would not be negotiating with the commonwealth director of public prosecutions and the matter would take “a long time” to resolve.

Both nurses remain on bail and were excused from attending court on Tuesday.

Their comments attracted nationwide condemnation, including from the prime minister and NSW premier. Both have been prohibited from working as nurses nationwide by Australia’s health practitioner watchdog and their registrations have been suspended in NSW.