Prosecutors have dropped murder and armed robbery charged against Darren Butler and Andrew Russell over the fatal fuel tanker crash last May that killed father-of-seven Daniel Merrett.
Natalie Olender, representing the Director of Public Prosecutions, formally withdrew the two charges against the pair in Wollongong Local Court on Wednesday.
Both men will instead be tried on the charges of manslaughter.
It is alleged Butler was driving and Russell a passenger in a silver Toyota Corolla that was chasing a Ford Territory containing Mr Merret and three passengers when the Territory slammed into a truck on the Princes Highway at Albion Park Rail in the early hours of May 18.
Mr Merrett was ejected from the vehicle on impact and died instantly.
Prosecutors will allege an argument over a $150 debt preceded the chase.
Neither Butler or Russell appeared in court via videolink from jail on Wednesday, but both had their cases adjourned for a week to finalise some paperwork.
The pair are expected to be committed for trial when they next front court.