The statue, which overlooks the River Thames and stands between the Riverside and Hammersmith Stands at Craven Cottage, shows Jackson standing on his toes in what the club have called an 'iconic pose'.
The singer is wearing black leather trousers and a glittery jacket, with beaded socks and black shoes.
The words to his smash hit Thriller are engraved on the podium below.
Man with the mirrors: Michael Jackson was a good friend of chairman Al Fayed
Al Fayed had originally planned to erect a memorial outside Harrods, but decided Craven Cottage was a fitting alternative after the sale of the Knightsbridge store last year.
The Fulham chairman said: 'Michael Jackson was truly a legend, a term used too often in this modern world saturated in the hyperbole surrounding celebrity.
'He was my friend, a man with whom I shared many happy memories and who died a tragic and untimely death.
'He left behind a legacy of music so vast it takes one's breath away;from a precocious talent to an ingenuity and ground-breaking modernity that shall never be repeated.
'Michael Jackson was, and shall always remain, one of a kind.'
Pure delight: Fulham will be Thrilled by the news of the stature
Fulham fanzine editor David Lloyd told Sportsmail: 'If you has asked me if I wanted a statue of Michael Jackson at Craven Cottage I would have said 'no'.
'However, we owe an enormous debt to the chairman and if this is one of his whims, then that's fine. As a football chairman he is one of the best; he's been fantastic.'
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Explore more:People: Mohamed Al Fayed, Michael Jackson, David Lloyd