The Daily Star says Sir Elton is ''roaring mad'' over not being paid royalties for the 3D version of The Lion King.
The Rocket Man won an Oscar for hits such as Circle Of Life and Can You Feel The Love Tonight for the original 1994 classic.
Although the film grossed almost half-a-billion pounds worldwide, the singer accepted a one-time fee of £1.25million for his soundtrack.
But now sources claim he has not been offered an extra penny for the lavish remake which has already racked up more in Los Angeles than £50million in a month at the US box office alone.
One said, ''He feels it is terribly mean-spirited of Disney not to offer him a slice of all the extra profits they are making.''
Elton has made a further fortune from worldwide spin-off hits, especially Circle Of Life, with lyrics by Tim Rice, and which made the Top 20 in 13 countries.
But a source close to the composer revealed: ''Its more a matter of principle than anything else. Hes ready to go to war with Disney over this.''