This paper describes a novel passivity/dissipativity based approach for fault tolerant control (FTC) of nonlinear systems by means of fault hiding, i.e., by inserting reconfiguration blocks (RBs) between the plant and controller to mitigate the fault effects. The proposed approach is used to design a new kind of RB, called passivation block (PB), which is generically employed for sensor and actuator faults and achieves simultaneously series, feedback and feedfoward passivation of the controller during a fault occurrence. Based on the dissipativity theory, new conditions are obtained to design a dynamic PB (DPB) which requires minimum information on the system model. In particular, the proposed DPB can be systematically obtained by combining the LMI-based conditions based on the knowledge about the passivity indices. Numerical simulations are carried out and indicate that the PBs are able to stabilize an example of a faulty nonlinear system. This work was supported in part by the Brazilian agencies CNPq, Brazil (Grant numbers: 307933/2018-0, 201370/2019-0), FAPEMIG, Brazil (Grant number: PPM-00053-17) and by the PROPG-CAPES/FAPEAM Scholarship Program (Grant number: 88887.217045/2018-00). The material in this paper was not presented at any conference. This paper was recommended for publication in revised form by Associate Editor Hernan Haimovich under the direction of Editor Sophie Tarbouriech