AC/DC drummer Phil Rudd is considering action against New Zealand police after the crown prosecutor dropped a charge of trying to hire a hitman to kill two people.

The 60-year-old was arrested and appeared in the Tauranga District Court yesterday.

Paul Mabey QC is working on behalf of Phil Rudd.

He says he's been advised by Crown Solicitor Greg Hollister-Jones that he's reviewed the police file and the available evidence to support the charge of Attempting to Procure Murder.

He says Mr Hollister-Jones has formed the view that there was insufficient evidence to justify that charge and withdrew it yesterday.

Phil Rudd plans to defend another charge of threatening to kill.

Mr Mabey says the damage to his client is incalculable and he's considering any possible remedies he may have.