The film's director, Matthew Wilder, told E! News that after months of standing by the troubled starlet, he has decided to drop Lohan from the project.
"We are withdrawing our offer from Lindsay Lohan," he said. "We are currently in negotiations [with another actress] and working out the legalities of bringing her onboard."
The director explained that the inability to insure Lohan was a factor in the decision to continue the production without the embattled actress.
"We have stuck by Lindsay very patiently for a long time with a lot of love and support," Wilder said. "Ultimately, the impossibility of insuring her — and some other issues — have made it impossible for us to go forward."
Lohan's replacement is expected to be announced on Monday.
Although Wilder has publicly supported Lohan through her legal drama and substance abuse issues, and maintained he will strive to accommodate the actress, the director recently hinted that the production may have to ditch the star.
"You know we have been through a lot with this project, and although she is still our number one choice — we do have a Plan B if she cannot film 'Inferno,' " Wilder told Radar Online. The director also added that he had been communicating with other actresses who were interested in the role.
Questions about whether the starlet could complete the movie have dogged the project throughout Lohan's eventful year, which has included two prison bids for violating her probation. Filming was set to begin in November but Lohan was ordered to remain in rehab until January. While Wilder has previously admitted his frustration with the actress' situation, he has also maintained that Lohan's talent was worth sticking by the star.
"I understand people's exasperation," he told MTV News in September. "I share it. But there is a tremendous gift underneath all the obvious baggage."
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