The actress, who has been in and out of jail and rehab this year (10), is currently serving out a three-month stint at California's Betty Ford clinic after failing two mandatory drug tests.
She was rumoured to have reached out to her estranged father when he was spotted visiting the centre on Sunday (07Nov10), and they fuelled speculation of a reunion when they enjoyed an outing to a movie theatre together on Wednesday (10Nov10).
Michael Lohan has now confirmed they are making good progress in fixing their former family feud.
He tells The R List blogger Jenn Hoffman, "I’m looking forward to seeing her again... The only problem is when you are in the public eye like we are, the entire relationship is under scrutiny so it’s hard. It’s harder for her... I know for a fact she’s focusing on herself. I see it more now than ever."
And Lohan is adamant his daughter will be able to revive her flagging movie career once she kicks her addictions.
He adds, "She’s gifted... (She just needs to stay) on the track she is now and focusing on being Lindsay. That’s it."