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The troubled actress - who is currently scheduled to remain in the Betty Ford rehabilitation centre until January 3, 2011 after failing two court-ordered drugs tests in September - is said be in talks with bosses of the ABC show to make an appearance on the next series.
An insider explained: "Lindsay has been talking with the Dancing with the Stars people. She is definitely interested and considering being on the show."
It is thought the Machete star believes the show's gruelling rehearsal schedule would be a positive influence on her, and would help with her "transition" back to the world of work.
The source added to gossip website RadarOnline.com: "Lindsay's treatment team thinks Dancing with the Stars would be a perfect transition back to work for her.
"She would have a set schedule every day, would be occupied and would be very productive. Lindsay wanted their approval before proceeding in talks with the producers and she got it."
The 24-year-old star's continuing legal issues - which saw her imprisoned on two occasions this year - stem from a 2007 conviction for driving under the influence (DUI).
