US prosecutors have said they will charge Lindsay Lohan with felony grand theft of a necklace reported stolen from a jewellery store.
District Attorney's spokeswoman Jane Robison said Lohan was due in court for an arraignment hearing on Wednesday afternoon.
The charge brings the troubled Mean Girls star another step closer to returning to jail.
Los Angeles police had said that Lohan was under investigation for taking a necklace from a Venice store later identified as Kamofie and Co.
Detectives obtained a search warrant to try to retrieve the item from Lohan's home, but the necklace - worth 2,500 US dollars (£1,550) - was turned into a police station before any search was made.
"We vehemently deny these allegations and, if charges are filed, we will fight them in court, not in the press," Lohan's lawyer Shawn Chapman Holley said in a statement released on Saturday.
The 24-year-old actress, pop singer and model remains on probation for a 2007 drunken driving case and a judge had threatened to throw her in jail if she ran into trouble again.
Ms Robison said bail would be decided by a judge.