Katherine Jackson has had a change of heart, deciding she doesn't want to sell the Jackson family home after all.

During a court hearing yesterday, Howard Weitzman, the lawyer for the Michael Jackson Estate, announced they were withdrawing their petition to get the judge's approval to sell the Hayvenhurst estate in Encino.

Weitzman said they submitted the petition because Katherine expressed a desire to sell the property but has since had second thoughts.

The court did, however, approve a petition for Katherine to buy another house.  Sources tell TMZ ... she wants to buy the home she's currently renting in Calabasas, where she can live with Michael's 3 kids.