The actress has mentioned her participation in the project previously, though Lifetime had yet to confirm Lohan in the lead role.
Production on the film, which will focus on Taylor's long-running, on-and-off relationship with Richard Burton, begins production in early June in Los Angeles.
“I have always admired and had enormous respect for Elizabeth Taylor," Lohan said of the project. "She was not only an incredible actress but an amazing woman as well. I am very honored to have been asked to play this role.”
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Rob Sharenow, executive vice president, programming, of Lifetime Networks, added that Lohan "is one of the rare actresses who possesses the talent, beauty and intrigue to capture the spirit of such a provocative icon.”
The oft-troubled Lohan, 25, recently untangled herself from the legal problems that have plagued her personal life, having her formal probation stemming from her DUI arrest lifted after successfully completing community service and therapy sessions.