The actress - who recently made a comeback in Lifetime movie Liz & Dick - was taken into custody after a fight in a nightclub, TMZ claims.
The incident at Club Avenue took place at around 4am when an argument with a female clubber became physical, the reports state.
Lohan, who is thought to be at the police station at the moment, was arrested for allegedly assaulting the other woman involved.
Lohan was reported to have said "give me my space" to a woman sat in a booth nearby as words were exchanged. She then allegedly punched the woman on the left side of the face some time later.
The actress was arrested for third degree misdemeanour assault and released several hours after being taken into custody.
The news comes shortly after it emerged that Lohan may be charged for allegedly lying to police about a car accident earlier this year.
If she is formally charged with either offence, it could trigger a probation violation. Lohan has been said to be "terrified" about the prospect of returning to jail.
The actress recently admitted that she feels "bullied" by the media, while Lady GaGa offered the star support by tweeting: "They always try to knock the greats down a few pegs."