"We are withdrawing our offer from Lindsay Lohan," director Matthew Wilder told celebrity webstie , Radar Online.

Last week, Mr Wilder said that while Lohan was still producers’ No. 1 choice to play the late Deep Throat star, "we do have a plan B if she cannot film Inferno.”

He said producers had heard from other actresses interested in playing Lovelace but still hoped that Lohan would star.

Lohan has been mired in legal problems, including a brief stint in jail, and is currently undergoing court-ordered treatment for drug addiction at the Betty Ford Center in southern California. She is expected to be in rehab until at least Jan. 3, 2011.

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Mr Wilder was reportedly “stunned” when Lohan tested positive for cocaine in a court-ordered drug test in September.

"We have stuck by Lindsay very patiently for a long time with a lot of love and support," he said.

"Ultimately, the impossibility of insuring her - and some other issues - have made it impossible for us to go forward."

He said his production team was currently negotiating with another lead actress and would make an announcement soon.

Read more about Li-Lo fired from porn star biopic at Radar Online.