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The troubled actress, who is currently being treated for alcoholism and drug abuse in Malibu's Promises clinic, was set to star in the 2007 autumn campaign for fashion house Jill Stuart and shot the advertisements in April.
However, the Japanese branch of the company who funded the campaign are said to be furious with Lindsay's recent behavior and no longer want her involved.
A source told the New York Daily News newspaper: "The Japanese licensee paid for it, and they wanted to pull the plug.
"The day Lindsay appeared on the front page of the newspaper crashed out in the front seat of the SUV, the Japanese told Ron Curtis (Jill Stuart's CEO) they no longer wanted to be involved. And they are the ones who financed the campaign."
However, Curtis insists the international campaign will still go ahead as planned.
He said: "The ads are running as planned, and we have the utmost support for Lindsay and her rehabilitation, and she is doing great. They will also appear in all of the major lifestyle fashion magazines for fall in Asia and the U.S."
Meanwhile, the 'Mean Girls' star is being sued over a 2005 accident in which she crashed her car into a parked van.
The $3.6 million lawsuit has been filed by Grandeur Incorporated, who claim Lindsay plowed into their company van as she made an illegal U-turn in Beverly Hills.