On Wednesday a court spokesperson confirmed Shelby County Chancellor JoeDae Jenkins had blocked efforts to go ahead with the proposed sale which had been scheduled for Thursday.
"As the court has now made clear, there was no validity to the claims. There will be no foreclosure," Graceland and Elvis Presley Enterprises said in a statement.
"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."
Riley, the current owner of the historic 13-acre estate in Memphis, had branded the planned foreclosure "fraudulent" and filed a lawsuit to stop it.
Elvis' granddaughter Riley, 34, is the current owner of the iconic property. She is challenging the sale with a lawsuit, after claiming it is "fraudulent."
Riley's mum, and Elvis' daughter, Lisa Marie Presley inherited the estate when Elvis died in 1977, and it became open to the public as a museum in 1982.
Lisa Marie reportedly took out a $3.8million (£2.98million) loan in 2018, using Graceland as collateral. Now the company she borrowed the money from is claiming the 54-year-old didn't pay the money back before she died last January.
Riley has filed a lawsuit against the company, claiming her mother never borrowed any money from them, and documents that reportedly show otherwise "are fraudulent."
Lisa Marie Presley's daughter, actor Riley Keough, is selling her historic cottage in Los Angeles, and pictures show a home that's both charming and luxurious.
The 34-year-old star of Daisy Jones & the Six has listed her 2-bedroom, 2-bathroom, 1,191-square-foot cottage in Atwater Village for just under $1.6 million, and while the residence is considerably smaller than the typical staggering celebrity home, it offers every amenity.
The house sits on a 4,797-squre-foot lot behind hedges that ensure privacy. The private entry leads to a stone courtyard that "exudes the timeless elegance of 1920s architecture," according to the listing from Todd Bachenheimer and Sherri Rogers at Compass Realty.
Originally built in 1927, the Tudor-style residence also includes:
A large living room with a coved ceiling, picture windows and bench seats overlooking the front garden.
A formal dining area.
A fully modern kitchen.
A primary suite with dual closets, French doors and a master bathroom with a spa tub.
A renovated attic with alcove seating and a daybed.
Multiple outdoor spaces with mature fruit trees and well-groomed landscaping.
A detached infrared sauna.
Keough purchased the house for $1,332,000 in February of 2018, according to online property records. The current asking price of $1,595,000 breaks down to $1,339 per square foot and a monthly payment of $11,084.
