The Christmas holiday may delay Australia's Michael Katsidis from getting his hands on the full WBO lightweight boxing title this year following the collapse of his fight with unbeaten American Juan Diaz.

Current WBO champion, Diaz, has pulled out of a fight with WBO interim title holder Katsidis slated for February next year, reportedly due to contractual problems with his promoter Don King.

Katsidis's trainer and manager Brendon Smith said he expected the WBO to do the right thing and install the Queenslander as the new champion.

Smith said he had already initiated legal action in a bid to ensure his fighter's rights were protected.

He urged Diaz, who also holds the IBF and WBA titles, to relinquish his WBO crown rather than be stripped of it by the WBO.

"The most honorable thing would be for him (Diaz) to relinquish the title before the WBO strip him," Smith said from California.

"Over the Christmas period everywhere closes down, that's slowing the process down."

Smith said Katsidis and himself would remain in the United States until his next fight was finalised.

"I'm sure you can expect to see Michael fight by March at the latest and I believe it will be a WBO world title defence, thought I can't fully confirm that yet," Smith said.

"We will have a special little Christmas. I'm going give him poached eggs and he's going give me eight rounds on the pads."

Smith said he was proud of the way Katsidis was handling yet another delay in what has been a stop-start professional career.

"He's handling it very well, this is boxing, a lot of things happen outside the ring, but there is disappointment," Smith said.

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