The president angrily denounced the decision and berated Barr over it, according to the officials.
McCabe's legal team said the DOJ reached the only possible conclusion.
The decision resolves a criminal investigation that spanned more than a year.
"To have this horrific black cloud that's been hanging over me and my family for nearly the last two years, to have that finally lifted is just an unbelievable - it's a relief I'm not sure I can really explain to you adequately", McCabe said.
"At long last, justice has been done in this matter".
McCabe filed a civil suit against the Justice Department previous year, arguing that his firing was politically motivated.
The Justice Department's inspector general forwarded the findings for prosecutors, but the months went by with no criminal charges.
The suit named Attorney General William Barr as a defendant. "The pursuit of political enemies and the use of the criminal justice system and criminal investigations to exact some sort of revenge on those political enemies is not something that should be happening in the United States of America".
But the DOJ's inspector general, Michael Horowitz, recommended criminal charges against McCabe in 2018 for allegedly misleading investigators when he was asked about providing information in 2016 to a Wall Street Journal reporter about an investigation into the Clinton Foundation.
The moment came against a backdrop of growing anger from Trump at the Justice Department. Trump has argued that the FBI under their watch initiated politically motivated investigations into his 2016 campaign, including seeking a Foreign Intelligence Surveillance Act (FISA) warrant to spy on former campaign aide Carter Page.
He was sacked in March, hours before he was set to retire.
McCabe, a frequent target of Trump's attacks, has denied that he intentionally misled anyone. The investigation, he said, raised "questions about the legitimacy of his presence in the White House".
And the US Attorney in DC has been under fire this week following the Justice Department forcing the office to lessen the sentencing recommendation for Trump confidant Roger Stone after the President tweeted that the department's treatment of his friend was unfair.
The Atlantic's Adam Serwer suggested on Twitter that the McCabe announcement "may be part of Barr's PR blitz to make it seem like [he] is preserving rather than undermining the DOJ's independence".
The president was particularly incensed no charges were filed over Comey's handling of memos about his interactions with Trump, a matter that was referred to the Justice Department for potential prosecution, according to a White House official and a Republican close to the White House who weren't authorized to speak publicly about private discussions and spoke on condition of anonymity.
Former federal prosecutor Renato Mariotti said the Justice Department wasted resources to pursue a years-long investigation of McCabe that was "obviously too weak to bring charges" but is now intervening in a case that "resulted in a conviction".