The Mean Girls actress is said to be in talks with French label, the House of Emanuel Ungaro.
But the current design chief, Esteban Cortazar, is said to be furious about the possibility of Lohan coming to work with him.
An insider revealed:
"Esteban is threatening to leave the company if they bring Lindsay on as a consultant. It has been a revolving door of designers there and if he leaves, his team will go with him."
Lilo is reportedly in Paris in her bid to become a "creative consultant" for Ungaro.
Ungaro owner Asim Abdullah signed Cortazar in 2007 at the age of 23, according to US reports.
A source added:
"Ungaro thinks Lindsay is going to bring the company new energy and new buzz, but she is going to be the nail in the coffin. Nobody will take them seriously ever again."
A representative for the House of Ungaro was unavailable for comment.
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