The hit-and-run case against Lindsay Lohan in Manhattan won't proceed because prosecutors are not moving ahead with charges after surveillance video appears to exonerate the actress, sources tell NBC 4 New York.

Police had initially said Lohan, 26, allegedly struck a Jersey City man while trying to navigate her 2010 Porsche Cayenne out of an alleyway between the Dream Hotel and the Maritime in Chelsea around 2:30 a.m. on Sept. 19.

Surveillance video shows Lohan flashing her headlights as she signaled to the man to move out of her vehicle's path.

She continued to drive forward and her right bumper either brushed by or completely missed the man. After Lohan passed him, the video shows the man running after her, yelling.

A law enforcement official said there was no indication Lohan was intoxicated or had been drinking  before or after the incident.

Lohan was released with a desk appearance ticket. She had been due in court on Tuesday, but that court appearance has been canceled and no charges are expected, sources said.

The Manhattan District Attorney had no comment.

At the time of her arrest, her publicist, Steve Honig, said he was confident the allegations would prove false.

Lohan remains on informal probation for taking a necklace last year from a jewelry store without permission.