Master of the Moon and split (2004–2010)
Dio released their tenth studio album, Master of the Moon on August 30, 2004, in Europe through SPV Records and on September 7, 2004, in the United States through Sanctuary Records. The album features multi-instrumentalist Jeff Pilson (formerly of Dokken) on bass duties; however, because of prior obligations with Foreigner, he was only available for the recording sessions, and so was replaced by Rudy Sarzo (formerly of Ozzy Osbourne, Quiet Riot, Whitesnake, Blue Öyster Cult among others) on the tour.
2005 saw the release of the Dio live album Evil or Divine – Live in New York City, which featured the same show that was released on DVD in 2003. Dio toured South America, Japan, Europe, and Russia in 2005. Their autumn tour was titled "An Evening With Dio" and featured a regular set, and then a second set of the band playing Holy Diver in its entirety. A DVD of the tour was filmed in London. The audio of this performance, a double CD named Holy Diver – Live was released in April 2006.
In 2007, it was announced that Black Sabbath would reunite with Dio and go under the name Heaven & Hell. The band released The Devil You Know in 2009.
Dio's involvement with Heaven & Hell delayed the recording of what was to be the follow-up to Master of the Moon, Magica II. The three-year hiatus was briefly interrupted for a 10 concert European mini-tour in May/June 2008, and was scheduled to be interrupted again in November/December 2009 with 22 concerts starting in the UK and ending in Germany.
Doug Aldrich was to have filled in for Craig Goldy on guitar on these dates, who had other obligations. Dio intended to release a new single, entitled "Electra", to coincide with the tour. This would have been their first studio material in 5 years. The band also intended to record an album or two in 2010.
On November 18, 2009, the European tour was cancelled due to Dio's hospitalization. He had been diagnosed with stomach cancer, and was undergoing treatment. His manager and wife Wendy Dio thanked well-wishers and said "After he kills this dragon, Ronnie will be back on stage, where he belongs, doing what he loves best, performing for his fans."
On February 19, 2010, it was announced on Dio's official website that he would release a box set, entitled the Tournado Box Set, for limited purchase. The set includes the Killing the Dragon CD, Evil or Divine DVD (PAL format only), DVD bonus material, interviews, photo gallery, never-before-seen behind the scenes footage, promo video for the Killing the Dragon track "Push", exclusive Dio cards, and the bonus CD single "Electra" (which is the last song the band recorded), from the unfinished albums Magica II & Magica III.