The party-loving star's hit sitcom has been scrapped for the remainder of the current season following a series of scandals in his private life and his public rants against show creator Chuck Lorre.

But Sheen is now preparing to hit back at CBS bosses by issuing a $320 million lawsuit suit claiming mental anguish, according to the New York Post.

The publication reports the legal action will also be aimed at Lorre and Warner Bros. chiefs, and could be lodged with a California court on Monday (28Feb11).