Clement "Butch" Desmier, 68, was found dead at his house in Rowlestone Rise, Ravenscliffe, Bradford in August 2012.
The father-of-six and grandfather of 10 had suffered multiple injuries, including 40 stab wounds.
Police said the investigation was ongoing and appealed for anyone with information to contact officers.
A 19-year-old man arrested on suspicion of murdering a grandfather who was stabbed to death more than two years ago has been bailed.