The late singer - who was known as the 'King of Pop' - was a close friend of the Hollywood beauty, who passed away on Wednesday (23.03.11) aged 79, and believed they understood each other because they had both been child stars.
Their mutual friend David Gest said: "I recall the time we were having dinner at La Scala restaurant in Beverly Hills. People flocked around her - it was funny because for once Michael wasn't the centre of attention.
"I remember he leaned over and whispered to me, 'Now that's what you call royalty.'
"To Americans she was royalty, she was the closest thing they have to a queen and everywhere she went people fawned over her.
"Michael once told me that the reason they got along so well was that she was a child star herself, so understood him completely."
Concert promoter David also revealed 'Thriller' singer - who died in June 2009 - would often shower the 'Cleopatra' star with gifts, and felt he could be "human" when he was with her.
David added to The Sun newspaper: "They would take trips together to New York or London. And Elizabeth loved lavish gifts. Michael would shower her with presents of jewellery and said she was like an excited little kid when he presented her with something new.
"She loved this specific violet rose which you could only get in this one Beverly Hills florist."
Elizabeth started her career aged 10 in the film 'There's One Born Every Minute' in 1942, and went on to become one of the biggest stars of the 'Golden Age of Hollywood' in the 1950s. She continued acting until 2001 appearing in the TV film 'These Old Broads'.
Michael shot to fame as a member of The Jackson five, which he starred in from the age of six with his brothers, before going on to become one of the biggest pop stars of all-time.
The group had their first hit with lead vocals from Michael in 1969 with 'I Want You Back'.