Avril Lavigne and Lindsay Lohan's Chateau Spat

Source claims singer never called Lindsay a "loser" and was simply offended from a prior snub

Although the N.Y. Post claims Avril Lavigne called Lindsay Lohan a "loser" during a heated exchange at Chateau Marmont last week, a source close to the Canadian singer claims that never happened.

"Avril never called Lindsay a loser," a source tells E!. "Lindsay had offended Avril a week before and Avril simply told Lindsay that she was upset about what had happened, and that she didn't want to talk to her."

So what was the prior snub that got Avril annoyed in the first place?

Our source says Avril and some friends were at Chateau about two weeks agoand had walked by Lindsay's table when they were being seated. One of Avril's friends went over to say hello to Lindsay but Avril didn't see the starlet and kept walking.

"It was a misunderstanding," says our source. "Lindsay thought Avril was blowing her off, but Avril didn't see her. When Avril found out later that Lohan had tried to say hello to her, she walked back over to Lindsay's table to say hi."

But when Avril returned, our source says Lindsay was no longer feeling friendly.

"Avril said hi and Lindsay just kept talking to her friends," says our source. "Avril then tapped Lindsay on the shoulder and Lindsay turned, looked at her, and then turned right back around."

This is why Avril was less than welcoming when LiLo tried to be chummy the following week, according to our source. Lucky for Lavigne, Lohan's hissyfit didn't get the pop princess kicked out of Chateau.

"It was obvious that Lindsay was wasted, so the security didn't take her seriously," our source says. "She looked completely disheveled as always. Avril is a very sweet girl, and she wouldn't start something with Lindsay for nothing. She never threatened her."