Celebrity singer Julio Iglesias is suing the breakaway state for $10 million in damages in connection to being "deceived" after being invited to do a gig in occupied Kyrenia, reports say.

Iglesias was invited to perform at Merit Crystal Cove Hotel in Kyrenia but cancelled in October 2010 after intense Greek Cypriot opposition. 

Turkish daily Hurriyet said that Iglesias' management company which has a Turkish partner was "deceived" over the status of the 'TRNC' claiming they were not aware it lacked "governmental characteristics".

Iglesias' "scheduled concert was cancelled at the moment we were informed that the city is in an area called an independent country without being internationally recognised," a spokesman for Iglesias said when the gig was cancelled.

Iglesias joined a list of other stars such as Jennifer Lopez, Justin Timberlake and Rihanna, all withdrawing from performances following pressure. 

Iglesias was unsuccessfully sued first from Voyager Cyprus Company which owns Merit Crystal Hotel. 

The company asked for its retainer fee back, which Iglesias' management company, Creative Talent Agency (ICTA), reportedly never returned, Hurriyet said.

ICTA then sued both the Voyager and the breakaway state on August 12 last year for $10 million (some €7.6 million) in damages.

ICTA's case is being handled by Athan Tsimpedes, an American lawyer of Greek descent who has argued in the past that Greek Cypriots should use US courts to sue Turkey over property in the north.