The Mean Girls star teamed up with her younger brother Michael to create a program called Vigme, which allows fans to purchase items of clothing they have seen their favourite celebrities wearing.

However, they have been caught up in a $60 million (£37.5 million) lawsuit over the app after the siblings were sued by businessman Fima Potik, who claims they stole the idea from a previous project they worked on with him called Spotted Friend.

Potik previously won a restraining order banning the Lohans from working on the app while the legal wrangling continued, but both parties have now agree the order can be lifted.

The move has yet to be signed off by a judge, but should allow work to continue on the project, according to New York Post gossip column Page Six.

Lindsay subsequently expressed her delight by posting a link to a story about the latest development on her Instagram.com page, adding in a caption, "Because good people and living with good intentions always succeeds those that cannot find peace within themselves..."

Potik previously asked for the case to be dismissed because he was struggling to keep up with the mounting legal fees, but the Lohans' team pushed for it to continue because they want a judge to fine Potik for filing a "frivolous" lawsuit.