Demetrios Elidzides, 35, a Georgian national, is accused of hitting Charlie Birch, 39, from Welshpool, who died from multiple injuries when he was struck from by a car in the Peyia area in June last year.
Authorities believe it was a deliberate act following an altercation, and on Tuesday Elidzides appeared in court in Cyprus to deny a manslaughter charge and an attempted murder charge.
The defendant was formally charged on Tuesday after prosecutors decided to downgrade a premeditated murder charge to manslaughter.
Another hearing will now take place on March 19.
The incident happened just before 2.30am on Sunday June 24, when police were informed that two men, pedestrians, were lying injured on the tarmac on the Peyia-Ayios Georghios road in Paphos.
On arriving at the scene, authorities found Mr Birch lying on the ground, alongside an injured friend.
Mr Birch, a builder from Welshpool, died of multiple injuries.
Cypriot authorities have said the car driven by the suspect and his girlfriend, was later found abandoned at the Ayios Georghios harbour and had to be pulled out by the fire service.
They also said there had been an altercation in a bar in the Coral Bay area earlier in the evening, which involved two British men defending a woman.
Police initially arrested the 23-year-old woman, however she was released and police have said she is likely to be called as a prosecution witness.