The suit is to be heard Monday afternoon. It comes a week after Jackson gave up the title to his Neverland ranch in California.
In 2006, Jackson announced he would put out a new album for Khalifa's record label 2 Seas Records. Media reports say Khalifa is arguing that the promised work was never delivered.
Jackson's finances fell apart following his arrest in 2003 on charges that he molested a 13-year-old boy at Neverland. He moved to Bahrain after being acquitted of the charges.