She could have been in the hottest movie of the summer.

Instead, Lindsay Lohan, 23, declined the role of stripper Jade in The Hangover after declaring the screenplay "had no potential," Us Weekly reports in its its latest issue (on newsstands now).

A source tells Us that director Todd Phillips approached Lohan to star in the hit flick – which has raked in $205 million so far – after their mutual agent campaigned on the actress' behalf.

"The agent tried hard to get Phillips to consider her," says the source, "and when he finally agreed, Lindsay said she didn't like the script!"

The role went to actress Heather Graham.