The partnership coincides with the 25th anniversary of the late pop star's multiplatinum "Bad" album and record-breaking concert tour.
Jackson died June 25, 2009. He was 50. His personal physician was convicted last year of administering lethal levels of sedatives and anesthesia to the singer in an effort to help him sleep.
"Pepsi has always been at the forefront of pop culture, helping to shape the music landscape," Brad Jakeman, president of Global Enjoyment Brands and chief creative officer of PepsiCo Global Beverages Group, said in a statement Thursday. "This unique global partnership, around such a legendary music milestone, invites Pepsi fans from around the world to experience Michael Jackson's music in an engaging and very 'now' kind of way -- it's a model example of how Pepsi's 'Live for Now' campaign can manifest itself in a way that resonates the world over."
Pepsi said it will feature iconic silhouette imagery of the King of Pop on cans and will run contests for which winners will receive Jackson-themed merchandise and tickets to "Michael Jackson The Immortal World Tour," a stage show by Cirque du Soleil.
"We are thrilled to bring Michael and Pepsi back together, as they were in 1988, to celebrate the 25th anniversary of the 'Bad' album and tour and to put Michael on 1 billion Pepsi cans -- perhaps a Guinness record," John Branca and John McClain, co-executors of the estate of Michael Jackson, said in a statement. "We're excited to see it all come to life."
Jackson famously sustained burns to his scalp when pyrotechnics went awry and his hair caught on fire while he was filming a Pepsi commercial in 1984, however, he continued working with the company after the incident.