Rod Stewart's previous hits include Do Ya Think I'm Sexy and Maggie May

His covers album, Stardust: The Great American Songbook Volume III, sold more than 240,000 copies last week.

"He's absolutely thrilled," said his manager Arnold Stiefel. "I've never known him happier."

Stewart, 59, is currently being sued by three music promoters for allegedly not paying back a deposit for nine cancelled South American concerts.

"You shouldn't keep money that doesn't belong to you," said the promoters' lawyer Dennis Holahan at the civil trial on Monday in Los Angeles.

"This is a dispute about greed and arrogance," he added.

The promoters say a $780,000 (�424,000) deposit was not returned and are suing the singer for $2m (�1.1m).

Firm denial

Stewart, who was not in court, says the promoters failed to meet the terms of a deal which agreed to pay him $2.1m (�1.14m) in two instalments in 2002 before the concerts went ahead.

The trial continues.

Stewart's latest album, which features his versions of classic tracks including What a Wonderful World and Blue Moon, made its debut on the UK album chart at number three last week.

Volumes I and II of his Great American Songbook series have sold 4.7 million copies between them.

"He's so happy that so many fans have taken to this music. It just inspires him to sing it better. He's loving it," said Mr Stiefel.

A Rod Stewart gig recorded with the BBC Concert Orchestra at the Royal Albert Hall in London was broadcast on BBC One earlier this month.