According to the Hollywood Reporter, Lohan has joined the cast of the psychological thriller, which begins production in December.
The star will play Aubrey Fleming, a young woman who is rescued after being tortured by a serial killer. When she returns home, she claims to be someone else.
TriStar Pictures and Sony will produce the film and Chris Sivertson will direct.
Lohan, 20, stars in the film Bobby, directed by Emilio Estevez, which opens on November 17 in America. The actress has also completed filming for Georgia Rule.