Jackson is now said to be permanently living outside the US

Kamand Enterprise alleged the singer failed to pay the full amount after a $380,000 (�215,000) shopping trip.

Jackson was said to have bought items including a 19th Century silver tea and coffee set from its Hollywood shop.

"There was a return of some disputed items of furniture," Mr Jackson's lawyer Brent Ayscough said.

'All parties satisfied'

Before the settlement, the case had been due to be heard by a Los Angeles jury on Monday.

Kamand Enterprise's lawyer Saul Reiss said: "The matter was resolved to the satisfaction of all parties."

In its legal claim the antiques dealer said Jackson also bought a large mirror, a 13-branch candelabra, a pair of white marble and bronze centrepieces and a French silver bread holder in May 2004.

It said Jackson paid $200,000 (�113,000) towards the bill but refused to settle the balance.

The 47-year-old singer has been living in Bahrain since being acquitted of child molestation charges in June.