Michael Jackson is being sued for a breach of contract by an Arab sheik who claims that Jackson had agreed an exclusive deal with him.

Prince Abdullah Al-Kalif, who became friends with the pop star during his stay in Bahrain, paid Jackson an advance on a deal which is reported to have included writing an autobiography, recording two albums and helping to produce a musical based on his life.

Al-Kalif said that he gave Jackson a Rolls Royce worth £75,000 and paid for the star to maintain control of his Neverland ranch in 2005 (which was sold last week).

However, Jackson said that he saw the cash and cars as 'gifts' and never entered into an official agreement.

Although the suit is set to be heard at London's High Court, it is expected that both parties will settle outside of court.