"We are thrilled Lindsay will portray beloved Hollywood legend Elizabeth Taylor," by Rob Sharenow, Executive Vice President of Programming at Lifetime Networks said. "She is one of the rare actresses who possesses the talent, beauty and intrigue to capture the spirit of such a provocative icon."
Production is set to begin in early June in Los Angeles.
But not everyone is down with the former tween star's casting as Taylor.
Marking her first television appearance since her chat show on TV titan Oprah Winfrey's OWN network was canned last month, O'Donnell condemned the news.
Appearing as a panelist on the Today show, O'Donnell said problem-plagued Lohan isn't "capable" of playing Taylor.
"I feel very sorry for her," said O'Donnell. "I think she needs a lot of help. She needs a lot of time away."
Asked by Matt Lauer whether it was a "good idea" to cast the Mean Girls star in the role, O'Donnell snapped, "No".
She continued: "Because she's had a lot of trouble doing every single movie, including SNL. She was out and not at rehearsal. I think she's not in a place to work."
Star Jones added: "I used to think she was extremely talented, but I have not seen enough of her as an actress in recent years to really make an evaluation."
When TV pundit Donny Deutsch chimed in to say he was onboard with Lohan's involvement, calling her "our generation's Elizabeth Taylor!" O'Donnell spat the dummy.
"You're out of your mind! You're a crackhead!" O'Donnell fired back. "The last thing she did good she was sixteen," she said.
"I don't think she's right for the role and I don't think she's capable at this point to portray that character. I think the interest level in her has waned significantly."
Lohan's rep, Steve Honig, swiftly shot back: "I think Rosie should focus on her own career and stop worrying about everyone else's. It's a shame she has to be so cruel towards another person in order to keep herself in the news."
And according to Lohan's father, Michael, O'Donnell is in no position to judge his daughter.
"Who the hell is Rosie O'Donnell to judge anyone, especially Lindsay who has far more talent than Rosie ever had?" he tells Radaronline.com.
"Lindsay's talent isn't limited to being a comedian or getting notoriety for adopting and raising a bunch of kids," he adds.
He echoed to GossipCop: "My daughter and even I may have had our issues in life, but it's about making things right and turning things around... I was and am the first one to point out my own faults, Lindsay's and even others when we are wrong, but when we are not, I will fight tooth and nail for what's right!"
Michael continued, "In this case, Rosie, you are wrong. So why don't you... just sit back. Shut up and see if Lindsay proves herself before blabbing your unwarranted opinions."
He also addressed O'Donnell's comments on Twitter.
"Of ALL people, I can't believe YOU would judge my daughter or her ability. Second chances aren't up to you, they're up to God," he wrote.
O'Donnell replied: "She needs help - nobody around her seems to get that - it's tragic what has become of her life - work isn't gonna fix her."
Watch O'Donnell let rip below (Lohan pops into the convo at around the 8 minute mark):
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* Chime in, readers: Do you agree with O'Donnell? Or do you think Lohan is a good choice to play Taylor?
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