The Larnaca criminal court ruled on Wednesday that former Kition bishop Chrysostomos is mentally fit to follow proceedings in a rape case brought against him after he was reported by a woman.
The offence allegedly took place in April 2011 in his office in Larnaca.
Following the decision, the 83-year-old cleric entered a not guilty plea with a hand signal because he cannot speak due to a recent surgery to his vocal cords.
The case was then adjourned for July 26.
Chrysostomos also faces charges in a separate case relating to indecent assault of a minor.
His defence had argued that he did not have the mental capacity to follow legal proceedings.
A Greece-based forensics psychiatrist said the 83-year-old cleric was suffering from frontotemporal dementia and could not follow the court proceedings because the executive functions of the brain had been affected.
The executive functions include proficiency in adaptable thinking, planning, self-monitoring, self-control, working memory, time management, and organisation, necessary for someone to be able to hear and remember testimony.