Lindsay Lohan has been released from police custody after allegedly assaulting a woman at a nightclub in New York City's Chelsea neighborhood, and sources close to the actress are saying a cocktail of cocaine and alcohol lead to her outburst.

New reports from Perez Hilton reveal Lohan's inebriated state during the altercation at the bar Avenues, where the 26-year-old troubled actress punched a female patron in the face and was subsequently arrested for assault.

"She was drinking Grey Goose and also champagne. The vodka bottle was right in front of her. Lindsay was completely out of control. She was drinking way too much booze and was doing cocaine," said a source who was at the bar that night.

Things got tense between Lohan and a woman at the bar when the woman reportedly refused to make room for the actress in the club's VIP section, which infuriated Lohan.

"At one point, Lindsay moved up to VIP and was trying to get the woman to move her coat and purse in order to make room for her, but the woman was ignoring Lindsay," the insider said. "Lindsay started yelling at her and the woman told her to stop. Lindsay eventually huffed back to her table, furious."

Fueled by her haze of intoxication, Lohan grew angrier with the woman and eventually snapped, assaulting her out of nowhere and surprising everyone present.

"Lindsay was standing on the couch at her table, which put her even with the woman seated in VIP above her. She turned around and clocked her in the face. Lindsay was just looking for trouble," the source said. "She totally sucker-punched that girl in the face out of nowhere. Nobody saw it coming. She went wild and was kicking and screaming, cursing at the girl and then spit at her. The girl looked like she wanted to fight back at Lindsay, but was too startled by all the commotion to react."

Following the incident, Lindsay's father Michael Lohan has spoken out about his daughter's issues with substance abuse and her need for immediate help.

"She's got to get into treatment immediately. The drinking is out of control, it's literally out of control. And if anybody wants to deny that they're out of their minds. But I'm not going to be held accountable if this poor kid suffers any kind of demise or... I don't even want to go there," Michael Lohan said. "I believe it's alcohol, cocaine, and then taking pills to go to sleep - and I've heard that from a lot of people around her."