Director Matthew Wilder had Lohan go last week after citing difficulties securing insurance for the troubled star.
In a post on his Facebook page, Wilder writes: "We are so honoured to have Malin and know that she will kill it."
Production on the movie was delayed earlier this year after the Mean Girls star was imprisoned for breaching her probation over the summer.
The film is based on the events of Lovelace's life depicted in her book Ordeal, delving into the "difficult stuff she went through and overcame," according to producer Wali Razaqi
Lovelace, whose real name was Linda Susan Boreman, ultimately denounced her pornography career, becoming a spokesperson for the anti-pornography movement.
Bill Pullman, would appear as Playboy founder Hugh Hefner
Shooting was expected to begin this month but was once again stalled when Lohan was ordered to continue receiving treatment until January.
Malin would have made a great choice from the jump..
Hollywood wants Lohan to get her life back on track yet she continues to be her own worst enemy...
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