Los Angeles: Michael Jackson has saved his Neverland ranch from becoming another victim of the US housing crisis.

Lawyers for the reclusive former pop star announced Thursday that they had reached a refinancing agreement on the estate to prevent its scheduled sale at a public auction Tuesday.

The auction was set last month after Jackson repeatedly failed to pay interest on the $24.5 million he owes on the property.

The property includes a zoo stocked with exotic animals and more than a dozen amusement park rides. But it has fallen into disrepair since Jackson moved out of the central Californian estate following his acquittal on child molestation charges in 2005.