Ali Lohan is being lined up to play a "spoilt little princess" opposite Zac Efron, reports E!.
A spokesperson has confirmed she is auditioning for a role, which is rumoured to be a younger version of Ashley Tisdale's character Sharpay.
High School Musical regular Vanessa Hudgens is reportedly upset that the teen star may be given the part and is concerned by the media interest that follows the Lohan family.
A source said: "When Vanessa heard that Ali was vying for a part in High School Musical 3, she flipped.
"She knows Ali isn't Lindsay, but she’s still weary of the drama the Lohan clan brings."