Rory McIlroy’s legal dispute with his former management company has intensified, with the world No1 withdrawing from tournaments in China to prepare for a trial that is expected to take place in February.

In what marks a serious blow to the BMW Masters and WGC HSBC Champions events, to be played in Shanghai at the end of this month and the start of next respectively, McIlroy issued a statement on Monday evening explaining he needs a break from competitive action.

Earlier in the day Dublin’s commercial court had heard how mediation – as ordered by a judge – between McIlroy and the Horizon management company had failed to resolve the multimillion-pound matter. Talks had taken place over Friday and Saturday without agreement.

McIlroy said: “I’m going to need time away from tournament golf to prepare for the trial over my legal dispute with Horizon Sports Management. The court-directed mediation process failed over the weekend to resolve the issue.”

This casts a late shadow over what has proved an epic year on the course for McIlroy, including winning two major championships. There will be debate as to how his preparations and playing schedule before the Masters next April will be affected by the possibility of up to two weeks in a Dublin witness box.

The case between McIlroy and Horizon has been running for a year, with the player suing the Dublin-based firm on the alleged basis he was coaxed into signing an “unconscionable contract” which included “excessive commissions”.

Horizon is countersuing by claiming breach of contract and loss of commissions against McIlroy, who was to set up his own management firm, Rory McIlroy Inc. When signed to Horizon, McIlroy agreed an equipment deal with Nike worth $100m.

The plea for an out-of-court settlement came last month from Mr Justice Brian McGovern after it became apparent that the detailed financial business of another golfer and a close friend of McIlroy, Graeme McDowell, may have to enter the public domain. McDowell has also been a Horizon client, and McIlroy’s lawyers claim their client was on “markedly inferior” terms to his compatriot despite assurances to the contrary.

McIlroy will next play in the DP World Tour Championship in Dubai from 20-23 November.