Lindsay said via a representative she had been referencing the lyrics from the rapper's latest song, All Day.
"She is a friend of his, it is his new song, her intention was not to offend anyone and she apologises," the rep said.
The Mean Girls star removed the post altogether from Twitter, and changed the message on Instagram to read: "#kanye&kimAlldayn$ fun show #PFW #goodpeople=goodlife all from good moms!!!!!! @dinalohan @krisjenner."
Many shocked users of the social networking site had already spotted Lohan's use of the N-word, and were quick to comment on it.
"You said the N word?!? Wow I seen your original post and so did thousands others," one Instagram user wrote, according to TMZ, while another posted: "She deleted N word so fast ..... Wow !!"
The former child star has continued to use her social media accounts as normal, posting a snapshot which showed her posing in front of the Louvre shortly after using the offensive term.
Lohan travelled to Paris over the weekend from London, where she has been spending most of her time since starring in Speed-the-Plow from September to November.
- Daily Mail