Boy band svengali Lou Pearlman is to change his plea for charges of fraud to guilty after reaching a deal with prosecutors.

The 53-year-old former manager of Backstreet Boys and ‘N Sync is currently in jail after being indicted on three counts of bank fraud and separate counts of mail and wire fraud. At a July (07) hearing, a not guilty plea was submitted on his behalf after he refused to enter a plea.

But Pearlman has retracted his proclamation of innocence in a desperate bid to minimise any potential jail time.

As part of the plea deal, Pearlman has agreed to work with federal agents to recover as much of the $300 million he is accused of stealing from investors. He is also suspected of defrauding another $100 million from banks.

Pearlman is expected to enter the new plea at an Orlando, Florida court hearing on Thursday.

Prior to changing his plea, Pearlman faced 130 years in prison and a $3 million  fine if convicted of all charges in the federal indictment.