Michael Jackson is said to be living on a diet of gravy, painkillers and biscuits. The cash-strapped star - who settled a 4.7 million pounds [$7 million] court case against Sheikh Abdulla Al-Khalifa at the weekend - is apparently surviving on the bizarre diet after his spending habits spiraled out of control.

Jackson's financial woes are said to be a result of him blowing $1.5 billion on luxuries such as a Ferrari car and the entire stock from antiques shops and comic book stores he has visited.

Sources close to the "Thriller" singer say he is a "millionaire who lives like a billionaire."

However, the 50-year-old's family lawyer Brian Oxman insists the star is in excellent health and is not struggling financially.

He said: "Michael is in excellent financial shape. We should all be so fortunate to have his problems."

"He lives a pretty simple lifestyle these days. The extravagances are in the past. He is very low-key, but he is happy and doing well."

Jackson was being sued last week for borrowing the huge sum from the sheikh and failing to repay him by recording two new albums, writing an autobiography and penning a stage show.

The $7 million included $35,200 in utility bills for his Neverland estate, a 10-day Paris hotel bill of $157,000, bank funds of $983,000, court costs during his child abuse case in 2005 totaling $2.2 million, $502,000 living expenses during six months in the Middle East as well as Italian and U.K. holidays coming to $350,000.

The star was recently forced to sell his ranch, which initially cost 17 million pounds [$25.6 million] and ran up running costs of 2 million pound [$3 million].

Staff bills came to 2.5 million pounds [$3.7 million] a year while Debbie Rowe - the mother of two of his children, Prince, 11, and Paris, 10 - demands 750,000 pounds [$1.1 million] a year in maintenance.