The "Thriller" singer is due to start a London residency in July but his manager reportedly signed a contract last November which prevents him performing for 18 months.
The deal was signed with AllGood Entertainment, who signed Michael, his sister Janet and the rest of their siblings to perform together.
AllGood Entertainment President and CEO Patrick Allocco said: "We have a non-compete clause. Prior to our show, Michael cannot perform anywhere in the world."
The company claims they were willing to negotiate as soon as Jackson showed an interest in taking up the 50-date residency at London’s O2 arena, but their efforts to resolve the situation were ignored.
Lawyers for the family tour now want to stop the London concerts, but Jackson is fighting his case as he wasn't the one to sign the contract.
It is not the first time the highly-anticipated "This Is It" tour been in doubt. Earlier this month, it was claimed the 50-year-old star had been told he was too thin to perform live and doctors had begged him to eat more.
Although Concert promoter AEG Live insist Jackson is "extremely fit" and looking forward to taking to the stage, others claim he is dangerously underweight, and needs gain at least 20lbs to be considered healthy.
