Michael Jackson spent Ј4million on lavish statues, despite a spiralling debut problem, it's been reported.

The singer apparently bought the figures, believed to include statues of children playing together and the cartoon hero Peter Pan, for his Neverland home.

According to the Sun newspaper, Jackson, who is believed to be in substantial debt, financed the purchases with money from a 2006 deal with record label, Sony.

The reported purchases have been unearthed in a lawsuit filed by Jackon's former manager, Raymone Bain.

Bain, who managed Michael from 2003-2006, is suing the King of Pop for allegedly failing to reimburse her for business deals she orchestrated.

"The magnitude of his spending is legendary as he has earned and dissipated several fortunes,” Bain said in court papers seen by the newspaper.

"Mr Jackson's pattern has been to spend to the brink of insolvency and then borrow against his assets to further feed his spending.

“His unbridled spending would give any other individual a moment of pause."

The papers added: "Mr Jackson exhibited and continues to exhibit impulsive and irresponsible spending habits without regard to the financial limits of his earnings."

The singer recently forced the cancellation of an auction featuring property from his former Neverland home, due to take place in Los Angeles.

Jackson has denied tabloid reports he is suffering from skin cancer.

The 50-year-old singer is in good health and looking forward to his comeback shows in London this summer, his spokesman said.

(by Jason Gregory)