Rumours are rife that iconic Australian band AC/DC are set to retire due to health concerns of one of its band members.

Reports the band, which includes Tauranga-based drummer Phil Rudd, who owns Phil's Place restaurant at Tauranga Bridge Marina, is to call it quits surfaced in Australia on Monday.

Tauranga-based AC/DC drummer Phil Rudd.

Entertainment reported Peter Ford told radio station 3AW in Melbourne that the band may never perform again, reports Fairfax Media.

The rumours followed a post from Melbourne's Cherry Bar owner James Young on his businesses Facebook page.

'Weeks ago I heard something I kept to myself. The band got together for 40th anniversary show rehearsals and Malcolm had forgotten how to play guitar due to a clot on the brain caused by smoking.

'I hope and pray this isn't true and that Malcolm Young will be OK because Malcolm Young is the engine room of the greatest tough rock ‘n roll band the world has ever known.”

Other media have since reported there is no truth to the rumour.

AC/DC was formed by brothers Angus Young and brother Malcolm, who migrated from Scotland to Sydney when they were children, in 1973.

For more than 30 years, the band performed at sold-out concerts across the world.

In 2013, lead singer Brian said they were preparing to celebrate their 40th anniversary with the release of a new album and world tour.

SunLive is currently seeking comment from Phil.