Rosie O'Donnell doesn't feel Lindsay Lohan is "capable" of playing Dame Elizabeth Taylor in an upcoming biopic of the late actress.

The talk show host has slammed Lifetime's decision to cast Lindsay in the movie about the life of Elizabeth, who died of congestive heart failure in March 2011 at the age of 79.

Rosie weighed in on the news as she joined the Today show panel with Star Jones and Donny Deutsch this morning.

"I don't think she's right for the role and I don't think she's capable at this point to portray that character," she said of the star.

The actress has signed on for Liz and Dick, based on the late star's romance with Richard Burton. The Mean Girls star lost out on several movie deals after two Driving Under the Influence incidents and three visits to rehabilitation facilities. Her last major role was in 2009's Labor Pains.

While Lindsay has moved past her problems, Rosie believes she is still unfit and criticised her recent performances including when she hosted Saturday Night Live.

"I feel very sorry for her," she said. "I think she needs a lot of time away... She's had a lot of trouble doing every single movie, including SNL. She was out and not in rehearsal. I think she's not in a place to work."

Donny, on the other hand, has more faith in the actress. He believes "she's our generation's Elizabeth Taylor".

"You're out of your mind! You're a crackhead! The last thing she did good she was 16," Rosie said in response to Donny.

Meanwhile, the film's producer Larry Thompson has revealed he had a difficult time insuring Lindsay. He also has a backup plan in case it does not work out with the actress.

"Well, we have more than a Plan B actually, [because] Lindsay Lohan may be the most insured actress that ever walked on a soundstage," he told E! Online.

Larry kept details of the plan under wraps. He has also confessed to moving the filming location from Canada to Los Angeles to "minimise some risk".Lindsay has said she has Canadian work permits but the movie was reportedly moved to accommodate her legal woes. She is still under investigation for allegedly assaulting Marisa Dugas at the Standard Hotel in West Hollywood.Lindsay has denied the claims insisting she was not at the hotel at the time, despite surveillance video showing the contrary.

"The producers recognised that there could be problems stemming from the fact that Lindsay is under investigation for assault, and she is still on informal probation in her necklace theft case," a source told RadarOnline.

"It was just easier to move the shoot to Los Angeles as Lindsay lives there and relocating also gives jobs to local film crews which is always beneficial to the economy."

Casting Lindsay for the role was a risk Larry was willing to take. He believes she is going to do a good job.

"Now if I learn to regret it sitting here today I think it is still for the movie a great risk to run," he said.

"[Lindsay's] really excited by the challenge. She has a noble purpose; it's not like she's going to go do a little job - the responsibility of playing Elizabeth Taylor is large."

Production on Liz and Dick begins in early June.