Lindsay Lohan has been caught knocking back the booze at a New Years Eve party.

It had been rumoured that the rehabbed actress had fallen off the wagon during her recent trip to Capri, with one source claiming that she and her pals had run up a $700 bar bill durng one wild night out.

Now a U.S website has obtained proof that Lilo is back on the sauce.

TMZ has video of the starlet swigging from a bottle of champagne while partying in Italy.

Lindsay acknowledged the slip-up and her lawyer, Blair Berk, has released the following statement:

"Rehab gives you the tools to deal with slipping up. This is not about her spiraling into a 4-day binge.

This is what you want to happen–you want somebody to stop themselves.

The good news was that Lindsay stopped herself that night, called her sponsor, and got herself immediately back on track. There is no magic cure here.

The most unfortunate part of this is that Lindsay has to share her 'one day at a time' with the entire world."