is set in New York -- and now the show may actually be filmed there.
An on-set source tells PEOPLE that the ABC comedy will pack up and move east. "They are moving production of the show to New York City because it will be cheaper," the source says. "The only cast member that may be in question if he's moving or not is Eric Mabius
." Mabius plays Daniel Meade, the editor of the fictional fashion magazine, Mode.
His assistant Betty Suarez (America Ferrera
) lives with her family in Queens, N.Y.
But a rep for the show says nothing is certain. "No final decision has been made," a rep for the studio says. "We are exploring options and incentives that make sense for the show and the business."
Filming for Ugly Betty
's third season will begin in the Big Apple in July. Lindsay Lohan
is set to star
in five episodes that season. Her character will be introduced in the show's season finale. "She'll play a mean girl from high school who suddenly resurfaces in Betty's life," a rep for the show tells PEOPLE. --Abby Stern and Mary Margaret