The 25-year-old, who was earlier in talks to play John Gotti Jr's wife in "Gotti: In the Shadow of My Father", bowed out of the film as they could not reach a middle point, reported Aceshowbiz.
"I can confirm that Lindsay has not signed on to be a part of the John Gotti movie, nor is she in talks to join the cast. It does not look like an agreement can be made.
"Lindsay's representatives and film producers were unable to come to an agreement. Lindsay has the utmost respect for [director] Barry Levinson and the producers and hopes to work with them in the future and wishes them all the best," said publicist Steve Honig.
"Gotti: In the Shadow of My Father" is starring Travolta and Al Pacino as the titular character and Aniello John "The Tall Guy" Dellacroseb respectively. It is expected to start filming this fall.
Lohan, whose career was in slump due to her wild partying ways and run-ins with law, is slowly making a comeback in Hollywood. The actress is playing Elizabeth Taylor in a TV biopic "Liz & Dick".