CNN reported earlier this week that the judge in the case informed Lohan that any plea deal would involve jail time.
A once-promising star of Disney films such as "Freaky Friday" and "Herbie Fully Loaded," Lohan's career has been stalled since she was arrested twice in 2007 and later charged with drunken driving and drug possession.
In the past 10 months, Lohan has been jailed twice and sent to rehab twice for probation violations. A judge ordered her to undergo three months of treatment at the Betty Ford Center, and it was within three weeks of her release that she was accused of stealing the necklace.
While the theft case has caused more uncertainty for Lohan, it might benefit others.
The owners of Kamofie & Co. announced Wednesday that they will auction the necklace and donate the proceeds to an unspecified charity after the theft case is resolved. The item remains in the custody of authorities.
"If you plead in front of me, you are going to jail, period!" he said during the February 23 hearing.
Holley [Lohan's attorney] previously said her client would welcome a plea deal, but only if it did not involve going to jail.
Thursday's hearing marked Lohan's ninth court hearing in 10 months.