A judge in Tennessee has blocked a planned auction of Graceland, the former home of singer Elvis Presley.

The mansion has been at the centre of a dispute between Presley’s granddaughter, actress Riley Keough, and a company that claimed ownership after saying his estate had failed to repay a loan.

Keough inherited Graceland and much of Presley’s estate after her mother, Lisa Marie Presley, died last year.

Naussany Investments claimed Lisa Marie used the compound as collateral for a $3.8m (£3m) loan that was never paid back. They planned to sell it at an auction on Thursday.

However, Keough alleged that the paperwork on the loan was fraudulent and her mother’s signature had been forged.

On Wednesday, Shelby County Chancellor JoeDae Jenkins issued a temporary injunction against the proposed auction, a court spokeswoman confirmed to BBC News.

In a statement, Graceland and Elvis Presley Enterprises told the BBC: “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 bought Graceland Mansion in 1957 and lived there until he died two decades later.

In the early 1980s, the 14-acre compound was opened to the public as a music history theme park. Today it attracts roughly 600,000 visitors a year, according to the venue.

Elvis is buried there, as are his parents, daughter Lisa Marie, and her son Benjamin Keough.

Riley Keough, 34, is best known for starring in Amazon’s Daisy Jones & the Six and has also appeared in Logan Lucky, Zola, and Mad Max: Fury Road.

Her lawyer said he could not comment on pending litigation.

The BBC has also contacted representatives of Naussany Investment for comment.