In August, Lohan filed a lawsuit against the rapper for his song 'Give Me Everything', which includes the line, 'I got it locked up like Lindsay'.
The Mean Girls actress claimed that the song was "disparaging and defamatory" towards her character.
Pitbull has since apologised to Lohan and explained that the particular lyric in question wasn't meant to defame Lohan.
He said: "When I mentioned Lindsay Lohan in the record, it was a really positive message. When I say, 'I got it locked up'… that means you run that neighbourhood.
"When I say, 'I got it locked up like Lindsay Lohan,' I say, 'She runs her world, I'm trying to run mine'."
However, Pitbull is now countersuing Lohan, insisting in the suit that his lyric was justified by Lohan's multiple run-ins with the law, reports Rolling Stone.
Watch the music video for Pitbull's 'Give Me Everything' below: