Read more: Charlie Sheen coverage by US media is disgraceful--- treating as a circus the tragedy of a person falling apart

A private dispute resolution company, JAMS, are expected to use arbitration to resolve the case – filed against Warner Brothers Television and ‘Two and a Half Men’ co-creator Chuck Lorre for sacking Charlie from the sitcom – rather than it being heard in open court, as the actor had hoped.

Reacting to the decision, Charlie’s attorney, Martin Singer, told the Hollywood Reporter: “The subject matter of this dispute is not just Charlie and Chuck Lorre. Our lawsuit involves claims over the entire cast and crew, and there is no right to arbitrate with them.

"Whether we go to arbitration or court, we still feel we will prevail because the facts and law are 100 per cent in our favour. I can understand why Chuck Lorre wants to keep this in a secret tribunal. When the facts come out they will show that he and Warner Bros. had absolutely no basis to terminate my client."

JAMS decision was communicated in a letter to both parties’ attorneys and Howard Weitzman, who represents Chuck, says that arbitration was requested by his client and Warner Bros because that's what their contracts called for.

He told E! News: “Despite Mr. Sheen's objections JAMS made the correct decision.”

Meanwhile, Brooke Mueller - Charlie’s third wife and mother of his twin two-year-old sons Bob and Max – has moved back to Los Feliz, away from the actor, after briefly moving in with him and his two girlfriends in a different area of Los Angeles.

A source close to Brooke – who is currently undergoing treatment for substance abuse – told website RadarOnline.com: “She had briefly moved in with Charlie because he promised her that he was going to buy her a home in Mullholland Estates, where he lives. Brooke was very disappointed that didn't happen, and the house that Charlie told her he was buying for her, he will now be moving into himself.

"She had briefly moved in with Charlie because he promised her that he was going to buy her a home in Mullholland Estates, where he lives. Brooke was very disappointed that didn't happen, and the house that Charlie told her he was buying for her, he will now be moving into himself.”

Read more: Charlie Sheen coverage by US media is disgraceful--- treating as a circus the tragedy of a person falling apart