The band and Dignam were due to perform at the Ballykeeffe Amphitheatre to a sold-out audience. The gig has now been rescheduled to August 5th.
The Crazy World singer has been battling ill health nine years since first being diagnosed with amyloidosis, a rare blood disorder cancer, in March 2013.
Martina Brennan, a venue spokesperson wished Dignam well adding that they were looking forward to welcoming him and the band to Kilkenny next month.
The band are gearing up to play Dublin’s 3Arena on September 17th to celebrate their 40th anniversary.
Speaking to local radio station KCLR FM Ms Brennan said: “He had to be well enough to perform as well, you know, your health is your wealth as they say.
“We’re wishing him a very speedy recovery as well I might add because he loves performing and I know he wouldn’t be cancelling unless he really had to.”
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The 62-year-old grandfather has recently said he has not undergone chemotherapy in his battle against ill health in 10 months.
He has publicly said that he “appreciates every day now” due to his health battles.
“I just appreciate the fact that I’m getting my foot to the floor in the morning,” he admitted.