Avenatti, who in the past has said he's exploring a 2020 presidential run against Trump, garnered attention when he began representing Daniels.
Avenatti rose to prominence when he waged a campaign against Trump and his personal attorney Michael Cohen over hush money allegedly paid to Daniels, a pornographic film actor.
He is reported to be in police custody.
TMZ reported that the two had been sharing an apartment, but Avenatti had kicked the woman out after a break-up. This was stemming from a domestic violence incident.
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The Los Angeles Police Department tweeted that the star attorney was booked in the afternoon and his bail was set at $50,000. "We're told her face was "swollen and bruised" with "red marks" on both cheeks", writes TMZ.
Initial reports indicated that the woman in question was Lisa Storie, Avenatti's estranged wife. Ms. Storie-Avenatti was not subject to any such incident on Tuesday night. TMZ, which broke the news today, said the alleged incident occurred Tuesday night, and a second confrontation occurred today at an apartment building in Century City. He screamed repeatedly, "She hit me first".
The Vermont Democratic Party canceled events planned for Friday and Saturday, where Avenatti was scheduled to speak, and is refunding ticket sales. He said the party "wasn't going to step in that arena" as a result of the arrest.