The singer's iconic Memphis mansion was set for sale on Thursday after it was supposedly found Elvis' late daughter Lisa Marie Presley - who died aged 54 in January 2023 from a heart attack - had reportedly failed to pay a loan on the home.
But a Shelby County judge in Tennessee issued an order on Wednesday that stopped the estate auction going ahead this week.
Elvis Presley's only daughter Lisa Marie died aged 54 in January 2023. (AP PHOTO)
Chancellor Joe Dae Jenkins said: "The court will enjoin the sale as requested because, one, the real estate is considered unique under Tennessee law.
"And in being unique, the loss of the real estate would be considered irreparable harm."
The chancellor stated the notary who signed the 2018 Deed of Trust for Graceland in a sworn affidavit that she did not notarise Lisa Marie's signature.
This meant the signature and the authenticity of the deed was called into question.
The Tennessee judge has also ordered a trial delay to allow the opposition time to defend claims made by Elvis' heirs.
It comes days after Lisa Marie's actress daughter Riley Keough, 34, filed a lawsuit on Monday to block an allegedly "fraudulent" attempt to sell her grandfather Elvis' Graceland estate.
In her 60-page complaint, the Daisy Jones and the Six star claimed a company called Naussany Investments and Private Lending LLC was trying to defraud her family into selling Graceland by forging the signature of her late mother Lisa Marie - Elvis' only daughter.
In a statement issued after the judge's decision on Wednesday, Graceland and Elvis Presley Enterprises told People: "As the court has now made clear, there was no validity to the claims.
"There will be no foreclosure. Graceland will continue to operate as it has for the past 42 years, ensuring that Elvis fans from around the world can continue to have a best-in-class experience when visiting his iconic home."
Elvis Presley Enterprises added in a separate statement: "There is no foreclosure sale. Simply put, the counter lawsuit (that) has been filed is to stop the fraud."
Naussany is claiming Lisa Marie borrowed $US3.8 million ($A5.7 million) and gave them a deed of trust leveraging Graceland as security before the singer's death.
13°C