Lindsay Lohan (Reuters)

Linday Lohan has avoided another court case over a lawsuit relating to her 2007 arrest for driving under the influence after reaching an out-of-court settlement.

The Mean Girls star was sued in 2008 by three men who accused the actress of holding them hostage and endangering their lives after jumping into their car and embarking on a drunken drive through Malibu, California.

The alleged hijack ended with Lohan's arrest for DUI and police also reportedly found cocaine in the car. She later pleaded guilty to reckless drinking and driving and served one day in jail.

However, Lohan's legal woes from the driving drama have only now come to an end - on Wednesday, attorneys for the star and her three accusers, Ronnie Blake, Jakon Sutter and Dante Nigro, revealed they had struck a deal to stop the case from going to trial.

The terms of the agreement have not been disclosed. A dismissal notice is due to be filed in court to officially close the matter.

Lohan, who will celebrate her 26th birthday on Monday, is currently working on her career comeback and is filming her Elizabeth Taylor TV movie biopic Liz & Dick in Los Angeles.

Her driving woes continued earlier this month when she was accused of driving her Porsche into a tractor trailer on the Pacific Coast Highway on her way to the film set.