I wrote this procedure inspired by Cherian's answer. The difference is that in my version the user name is an argument of the procedure ( and not hard coded ) . I'm also doing a much necessary FLUSH PRIVILEGES after dropping the user.
DROP PROCEDURE IF EXISTS DropUserIfExists;
DELIMITER $$
CREATE PROCEDURE DropUserIfExists(MyUserName VARCHAR(100))
BEGIN
DECLARE foo BIGINT DEFAULT 0 ;
SELECT COUNT(*)
INTO foo
FROM mysql.user
WHERE User = MyUserName ;
IF foo > 0 THEN
SET @A = (SELECT Result FROM (SELECT GROUP_CONCAT("DROP USER"," ",MyUserName,"@'%'") AS Result) AS Q LIMIT 1);
PREPARE STMT FROM @A;
EXECUTE STMT;
FLUSH PRIVILEGES;
END IF;
END ;$$
DELIMITER ;
I also posted this code on the CodeReview website ( https://codereview.stackexchange.com/questions/15716/mysql-drop-user-if-exists )