The manager claims that he "guided Kelly through the recording of two new albums, substantial multi-million dollar tours... , a book deal, and a myriad of other appearances and events", reports TMZ.com.

He also claims that he became the singer's talent manager after assurances that the child pornography charges were false.

Kwatinetz's lawsuit says that Kelly's businesss manager told him that he could not spare the money, "because the monies were needed for payments to avoid lawsuits and adverse publicity resulting from Kelly's alleged sexual misconduct."

A spokesperson for Kelly has refuted all charges and has called the former manager a disgruntled employee.

The representative said: "Jeff Kwatinetz's complaint is a collection of half-truths, distortions, and outright fabrications."

He added: "Mr. Kwatinetz is a disgruntled former manager who apparently feels the need to try to seek retribution for his discharge. It is particularly disturbing, given his job as a professional talent manager and trusted adviser, that he would feel the need to lash out and dish what he thinks is dirt against a former client."

Kelly, accused of child pornography in 2002, was acquitted of the charges in 2008 after a six-year long legal battle.