The US actress was expected to promote her new film The Canyons but pulled out at the last minute.
Speaking about making the movie, director Paul Schrader told a news conference he had been "held hostage" for the last year and a half to the star.
And he declared himself to now be a "free man".
Paul Schrader (second right) with the cast and writer but no Lohan Lohan plays the girlfriend of a Los Angeles movie producer, portrayed by James Deen, who both take part in erotic encounters with couples found on the internet.
Schrader admitted Lohan "stepped up very hard" for the role but that the process was "exhausting" for her.
"One of her problems as an actor is she has a very hard time faking things," Schrader said.
He also told reporters in the Italian city: "For the last 16 months I've been hostage, by my own choosing, to a very talented but unpredictable actress.
Lohan pictured arriving at court earlier in the year "She was supposed to be here today, she said she would be, but she is not."
Neither Schrader nor Lohan's publicist gave a reason for the late cancellation.
The 27-year-old star has been plagued by legal and substance abuse problems.
She completed her latest court-ordered stay in rehab in July.
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