Speculation the Mean Girls star was set to play Taylor in the Lifetime TV movie Liz & Dick, about the icon's relationship with Richard Burton, has circled for months, and on Monday (23Apr12) it was confirmed she has won the part.
The role comes as Lohan tries to rebuild her once glittering career after a series of run-ins with the law and stints in rehab - but O'Donnell is adamant the actress is nowhere near ready to return to meaty acting roles.
While appearing as a panellist on America's Today show on Tuesday (24Apr12), she said, ""I feel very sorry for her. I think she needs a lot of time away... She's had a lot of trouble doing every single movie, including SNL (Saturday Night Live). She was out and not in rehearsal. I think she's not in a place to work.""
And when fellow panellist Donny Deutsch claimed Lohan is a modern-day Taylor, a fuming O'Donnell snapped back, ""You're out of your mind! You're a crackhead! The last thing she did good (was when) she was 16. 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.""