Jackson told a Los Vegas judge he worked out a confidential agreement with the people seeking to sell the items, TMZ.com reported Friday.
Representatives from an auction company, Universal Express, said they legitimately bought the items from Jackson's former business partner, who claimed he got them after a Jackson-related venture declared bankruptcy.
Jackson had sought a preliminary injunction this week to block the auction, claiming the items were his personal property. Among the reportedly more than 20,000 items were Jackson 5 costumes, sunglasses, hats and handwritten lyrics.
Notable deaths of 2014 [PHOTOS]