Contrary to reports, the actress's boyfriend, Egor Tarabasov, did not pop the question over the weekend.
"The story is untrue and holds no merit," Lohan's rep, Hunter Frederick, tells PEOPLE.
A longtime friend reached by PEOPLE also says the reports are not true.
Lohan, 29, moved in with the Russian business heir in London back in March after seven months of dating.
"She's in a really good place. She's made a new life for herself," a source close to Lohan told PEOPLE at the time.
"They are moving in together to a bigger place, and they seem to be getting more serious," the source added. "She seems really happy."
In an interview with The Sun last month, Lohan shed some light on her relationship with Tarabasov. "I haven't known Egor for that long," she said. "We've been together for about seven months. He is a great guy. I met him in the summer. I'm really happy."
Since moving to London in 2012, Lohan has been more at ease, according to insiders. Sources tell PEOPLE she's kept a lower profile, and is enjoying spending time with family, friends and of course, Tarabasov.
"She's not partying as much like she used to," a source revealed. "She's doing really well and she is taking cooking classes with some girlfriends ... She has been happy staying out of the public eye. She likes staying in and flying under the radar and staying out of trouble."