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According to TMZ, the 50-year-old has already begun filming episodes for the series, which he allegedly joined in order to confront anger issues.
Daughter Lindsay is said to be furious about the decision, insisting that she will never appear on the show and demanding that Michael continue to send money to her mother Dina.
The actress apparently told friends that she thinks her father should be paying maintenance to her younger siblings Ali and Cody.
Michael has not yet confirmed his appearance.
Other stars rumoured to have signed up for Celebrity Rehab's fifth season include actress Bai Ling and former Baywatch actor Jeremy Jackson.
> Lindsay Lohan 'feels great after rehab'
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