Lindsay Lohan is refusing to accept a plea deal which includes rehab or jail.

The 26-year-old actress has been offered 45 days in jail or 60 in rehab by prosecutors after being charged with lying to police about a car accident in California last summer but she has rejected both as she doesn't want any type of confinement.

"The Los Angeles City Attorney is requiring either jail time or rehab for Lindsay as part of any plea deal in her lying to cops case. She would have to go to rehab for at least 60 days, and the jail time would be at least 45 days. Lindsay refuses to accept any deal that has any type of confinement as part of the deal. Someone with her criminal history is lucky to be offered such a great deal, but she just doesn't seem to understand that. Barring any last shred of common sense on Lindsay's part, this case is going to trial," a source said.

While her lawyer Mark Heller is confident he can make a deal with prosecutors, Lindsay wants to go ahead with the trial, which is scheduled to start on March 18, even though multiple witnesses, including the passenger in her car will testify she was driving when she hit a cement truck on the Pacific Coast Highway last year.

"Lindsay is ready to go to trial. She has always wanted to face a jury of her peers, and feels confident she will be acquitted. Lindsay has nothing to hide," the insider added.