Jussie Smollett may face further legal woes over claims he staged a racist attack even after Chicago prosecutors dropped charges against him.

Smollett, an actor on the hit US series "Empire", said he was ready to "get back to work and move on with my life" after prosecutors decided not to proceed with the 16-count case against him on Tuesday.

However Chicago’s mayor, Rahm Emanuel, is reportedly considering suing the 36-year-old for $150,000 over the incident, saying Smollett has made a fool of the city.

Mr Emanuel said police have evidence Smollett lied about an attack on January 29 in which two masked men hurled racist and homophobic abuse as they poured bleach on him and tied a rope around his neck.

"He abused the city of Chicago, he actually committed a crime here... he said he wanted his name cleared. That is what I want for him. Let’s get to the bottom of this, let’s find out what happened," the mayor told ABC News.