Michael Jackson Sheikhs hands to end £4.7 million Bahrain case

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He's out of my life: Sheikh Abdullah and Jackson have settled the case

His legal team, led by Robert Englehart QC, must tell Mr Justice Sweeney the trial has been formally discontinued after just a handful of days in court.

The star's lawyers shook hands late last night on a settlement in principle with those representing Sheikh Abdullah bin Hamad bin Isa al-Khalifa, son of the King of Bahrain.

In a statement Jackson, 50, claimed he had been on the verge of boarding a transatlantic plane to bring him to London to give evidence this afternoon. But sources close to the case had predicted Jackson would climb down at the 11th hour.

At first, the cash-strapped former multi-millionaire had claimed to be too ill to travel. He caved in as he was due to face a grilling by the sheikh's QC, Bankim Thanki, over his financial affairs and the two men's personal relationship.

The court is unlikely to hear any details of the settlement. Jackson's lawyers are likely to have insisted on a confidentiality clause. The deal marks the end of a bizarre collaboration between the star known as Wacko Jacko and the wealthy Arab royal.

Sheikh Abdullah told the court last week he had been introduced over the phone by the singer's brother Jermaine.

He said he agreed to lend Jackson $1m (£670,000) during the star's child abuse trial in California before they had met in person. The sheikh said the money he gave to Jackson was part of a business venture and that he wanted it back.
Jackson, who was cleared of abuse, has always insisted there was no valid contract and the money was a gift.

The singer pulled out of the deal in May 2006 after 11 months and has not seen the sheikh since.