Entertainer Michael Jackson has managed to avert a foreclosure sale on his Neverland Ranch set for this week.

Jackson managed to broker a last minute sale of what is believed to be a £12 million loan on the California property to a large real estate investment firm.

The 2,700-acre ranch in Santa Barbara County was to be auctioned off on May 14 after Jackson defaulted on loan payments.

In a press release, Jackson said he was in discussions with Colony Capital and its founder, Tom Barrack Jr, "with regard to the ranch and other matters."

Colony, a Los Angeles-based firm that has invested more than £20 billion since its founding in 1991, is said to be "very comfortable" holding the loan while it negotiates payment terms.

The formerly high-flying singer and songwriter saw his career nosedive after a child molestation trial in 2005. Even though he was acquitted on all counts, he has faced significant financial problems in recent years.

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