Ronnie Coulter, 46, from Wishaw, is accused of killing the 32-year-old while acting with two other men.
His QC Donald Findlay said further time was needed "as to when - or indeed if - Mr Coulter will be fit to stand trial or whether we will proceed by an examination of facts hearing".
At the High Court in Glasgow, judge Lord Bannatyne continued the case.
Prosecutors allege that Mr Coulter was acting with two other men - Andrew Coulter and David Montgomery - at the time of the alleged attack.
The murder charge includes claims that Mr Chhokar was punched and prevented from defending himself.
He is then said to have been hit with a wooden baton before Mr Coulter repeatedly struck him with a knife and killed him.
It is further alleged that Mr Coulter did previously "envince malice and ill-will" towards Mr Chhokar.
He is then accused of attempting to defeat the ends of justice - which include claims he got another person to hide clothes worn during the alleged murder and a case of knives.
Mr Coulter is further accused of later attempting to pervert the course of justice with "intent to avoid "detection, arrest, prosecution and conviction".
He also faces earlier claims that on the day of the alleged murder, he forged the signature of Mr Chhokar to help cash a Â£100 giro cheque.
He is then accused of joining Andrew Coulter to break into Mr Chhokar's home in Wishaw and steal a cooker.
A man has appeared in court charged with the 1998 murder of Surjit Singh Chhokar in Overtown, North Lanarkshire.