The actress failed to appear on set this week to start shooting new movie The Best Times Of Our Lives - in which she was to take part in a steamy menage a trois with Keira Knightley.
Lindsay, 20, is reportedly unhappy with the terms of her contract.
A source told Life and Style magazine: "She didn't back out and the producers didn't pull the deal, but there were changes that weren't to her liking, and that was that."
Lindsay - who recently spent time in a Los Angeles rehab clinic to be treated for alcoholism - recently said she was thrilled to have landed a role in the project.
The epic, written by Keira's mother Sharman Macdonald, would have seen the Mean Girls star play Caitlin - the wife of late legendary Welsh poet Dylan Thomas.
Keira is set to play Vera - a childhood friend of Dylan's who is said to have had a sexual relationship with him and Caitlin.
Matthew Rhys, who will play the hard-drinking poet, said: "There will be a bit of a ménage a trois scene going on. I hope I'm up for it!"
Earlier this week, it was reported that Lindsay is having a lesbian affair in real life.
Former publicist Jonathan Jaxson claimed in his blog at jonathanjaxson.blogspot.com that the star was having a sexual relationship with her friend, DJ Samantha Ronson.
