The actor filed the suit against Two and Half Men co-creator Chuck Lorre and Warner Brothers Television, the company which makes the show, claiming he was unfairly sacked from the sitcom.
Earlier this week, private arbitration company JAMS said the dispute was within their jurisdiction and they could settle it away from the public eye.
Sheen's lawyer, Marty Singer, wasn't surprised they want to take on the case, as they stand to make "hundreds of thousands of dollars".
He added to the New York Daily News newspaper: "We're not backing down at all. Until a state judge orders that we must go into arbitration, our Superior Court lawsuit is proceeding full steam ahead."
Not fit for work
Sheen filed legal papers at Los Angeles Superior Court on March 10 over the cancellation of the last eight episodes of Two and a Half Men in February over concerns that Sheen was not fit for work.
Despite reports of his heavy partying and drug use, the 45-year-old actor has maintained this was not the case and he was fit and ready to shoot but Lorre was not prepared for the last episodes of the show.
On tour
Meanwhile, Sheen has added 12 dates to his My Violent Torpedo of Truth/Defeat Is Not an Option spoken word live tour.
The actor will now head across the US and Canada.
He has also announced that he will be offering 'meet-and-greet' packages at his shows, where for $750 fans can get a seat within the first 10 rows of the theatre, a personal photograph with the star, an autographed photo, a numbered limited-edition tour poster and an official meet-and-greet laminate.
Charlie wrote on the website offering tour tickets: "This IS where you will hear the REAL story from the Warlock. Bring it - I dare you to keep up with me. (sic)"