Fraud charges against a former rock guitarist have been dropped due to his ailing health.

Kevin James Peek, a guitarist in the 1970s group Sky, was charged in 2011 with more than 200 offences of gaining benefit by fraud.

He was alleged to have been involved in activities that related to the collapse of a West Australian company.

Peek was due to stand trial in the Perth District Court in April, but is being treated for cancer.

Chief Judge Peter Martino agreed with lawyers on Monday that Peek was not fit to stand trial and vacated the matter.