"Appearance in person is not required," judge Dominique Pauthe said after deliberating whether to postpone the case that should have seen the first French former head of state in the dock since World War II.
The judge said he had taken his decision because of the "medical problems" cited in a medical report submitted by Chirac's family that said he was unfit to attend.
According to that report, Pauthe said, the former president suffers from "severe memory problems and "significant errors of judgement and reasoning".
Chirac, best known internationally for his opposition to the 2003 US-led invasion of Iraq, has been linked to a series of corruption scandals but was never convicted.
The right-winger stands accused of illegal party funding ahead of his successful 1995 presidency bid.
If found guilty, he faces up to 10 years in jail and a fine of €150,000 ($210,000) on charges that include embezzlement and breach of trust during the years he served as mayor of Paris.
Following the court's procedural decisions, discussions on the details of the case will begin on Tuesday afternoon.
Chirac is the first French former head of state to face criminal charges since the leader of the collaborationist wartime regime, Marshal Philippe Petain, was convicted of treason after World War II.
He enjoyed immunity from prosecution as president from 1995 to 2007, but the case, which has already seen current Foreign Minister Alain Juppe convicted, has finally caught up with him.
He is accused on two counts of paying members of his political party for non-existent municipal jobs in Paris, where he was mayor from 1977 to 1995.
Chirac, who became France's best loved politician after leaving office in 2007, avoided the dock in March when lawyers for a co-defendant won a postponement by arguing that certain charges were unconstitutional.
But France's highest appeals court later over-ruled the challenge.
His lawyers said in a statement Saturday they he was medically unfit to attend.
"President Chirac indicated to the court his wish to see the trial proceed to its end and his willingness to assume his responsibilities, even though he is not entirely capable of taking part in the hearings," they said.
The neurological report drawn up at the request of his family concluded that Chirac was in "a vulnerable condition which will not allow him to answer questions about his past", Le Monde newspaper said on Saturday.
Another French newspaper on Sunday named the condition as "anosognosia", which is defined as being unaware of the disabilities one has.
Chirac's adopted daughter Anh Dao Traxel told AFP on Monday that the former president had not recognised her when she bumped into him in front of his Paris home in February.
"I met Jacques Chirac in front of his home, he didn't recognise me," she said, describing him as "an old, sick man".
At the start of the year his wife Bernadette denied that Chirac was suffering from Alzheimer's disease.
State prosecutors had called for the case to be dismissed, raising the likelihood that Chirac will avoid conviction if his case does go ahead.
Paris city hall last year dropped its civil charges against him in return for a payment of more than €2.2 million, from him and the right-wing UMP party.
Chirac, who on top of his 12 years as president has also served two terms as prime minister, paid more than half a million euros of this from his own pocket but did not acknowledge any wrongdoing.
Despite his legal problems, Chirac is much loved by the French who seem nostalgic for his warm manner and love of good food and beer, and his traditional style of statesmanship, which contrasts with the brash energy of his successor Nicolas Sarkozy.