Lindsay Lohan is reportedly in denial about returning to rehab.

The 26-year-old agreed on Monday (Tuesday, NZ time) to spend 90 days in a stay facility as part of her plea bargain with prosecutors in her reckless driving case.

Lohan pleaded no contest to misdemeanour charges of reckless driving, lying to police and obstructing police from performing their duties while investigating her June car crash in Los Angeles.

The judge overseeing the proceedings issued her a stern warning at the end of the hearing, indicating she needs to stay clear of drugs, drug users and places where she may be able to find illegal substances.

Despite that caution the actress was seen at a Hollywood's trendy AV Club on Monday night, according to X17Online.

Earlier reports suggested Lohan has been telling friends she is looking forward to focusing on herself in rehab.

But a source tells FOX411's Pop Tarts column the star is in really "full denial" about her substance abuse issues.

"Up until last week there was no way she was taking a plea deal, there was no way she was going to go back to rehab," an insider told the news outlet.

"She doesn't care. It isn't that she is stupid. She just doesn't get it."

Lohan has been in and out of rehab and faced a string of drinking and drug convictions since 2007.

It remains unknown when and where the Mean Girls star will enter treatment.

As part of her plea deal she has also agreed to complete 30 days of community labour and 18 months of psychiatric counselling

The agreement was made after over two hours of negotiations in the judge's chambers on Monday morning after Lindsay showed up 48 minutes late to court.

Following her appearance, it was revealed the actress had dismissed an offer of 30 days under house arrest. She would also have had to wear a SCRAM bracelet, which monitors alcohol and drug use.

A spokesperson for Lohan has yet to comment on the claims.

- Cover Media