"The matter in British Columbia occurred before Mr. Neurauter was a student at the University of Calgary", Marshall said in the statement.
The junior hockey player pleaded guilty in 2017 to sexual interference of a 13-year-old girl when he was 18.
Earlier this month he was sentenced to 90 days in jail, two years probation and is to be registered as a sex offender.
While Marshall acknowledged the outcry over the case, she said it "was really important for us to make a values-based decision".
Since news of his sentence, a petition demanding the University of Calgary expel Neurauter has garnered more than 40,000 signatures.
"There were a number of safety concerns that we took into account in our decision", she said Friday."We know that victims of sexual violence ... may have been triggered by this incident and we were also anxious about his safety, given some of the commentary on social media".
Ahead of the decision from U of C, an expert who works with survivors of sexual violence said the judge's decision sends a message that victims may not be taken seriously.
"The lack of significant consequences faced by Neurauter and other sexual predators demonstrates the dismissive attitude that society shows toward sexual violence and abuse", the club said in a statement. "He's frustrated that he's missing school", said Neurauter.
The victim's mother, who can not be identified to protect her daughter's identity, told CBC News on Wednesday she wanted Neurauter expelled and expressed concern for the safety of students because there was a sex offender on campus.
Neurauter was sentenced to 89 days in jail by a judge in Kamloops, B.C., but the judge is allowing him to serve his sentence intermittently.
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"He's very remorseful ... he's learned his lesson", said Neurauter.
Representatives from the University of Calgary are working with Neurauter to determine how he'll be able to complete his courses to finish his current semester.
But for now, the U of C has no way to outright expel Neurauter, since he wasn't a student when he committed the 2016 offence.
Neurauter is now not signed with any hockey team, but has played at the "Junior A" level, which is the second-highest rung on Canada's junior hockey ladder.
"I'm the only person who went to court every time there was a court date, even if it was just to set a court date. He didn't assault anyone", she said.
The B.C. prosecution service says he served the first day of his sentence on January 4, but the judge permitted him to serve the remainder starting May 4 after finishing his semester at the University of Calgary.
Chris and Susan Neurauter said they are proud of how their son has handled himself and disappointed in media coverage that they describe as distorted and sensationalistic.
Kaitlyn Casswell, who started the petition to expel Neurauter, told Postmedia she's dismayed by the decision, stressing that the fight isn't over for those concerned over student safety.
"The university is reviewing the situation".
"Most students are happy to see that (Neurauter's not on campus)". "We will provide further information when it is available".