No further details were immediately available, but police spokesman Jeff Lee said Avenatti was in the process of being formally booked.
A law enforcement official said Mr Avenatti is in police custody in Los Angeles following the bombshell allegation.
LAPD tweeted: “We can confirm that today LAPD Detectives arrested Michael Avenatti on suspicion of domestic violence.
“This is an ongoing investigation and we will provide more details as they become available.”
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A report for the alleged abuse was filed on Tuesday, Mr Lee said.
Mr Avenatti made a name for himself by attacking President Donald Trump and the White House.
The lawyer rose to international prominence during his defence of adult actress Stormy Daniels (Stephanie Clifford) during her defamation lawsuit against Trump.
He emerged a strident critic of the President in a series of media appearances on US cable news.
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He also posted fiery tweets and made public appearances in which he critiqued Trump’s administration.
Details of the alleged assault were initially reported by TMZ, who claimed Mr Avenatti was arrested on Wednesday after his “estranged wife”, Lisa Storie, filed a domestic violence report against the anti-Trump lawyer.
The couple filed for a divorce in 2017 after an allegedly tumultuous relationship.
In court documents, Ms Storie described her ex-husband as “hot-tempered”, “emotionally abusive” and “angry and vindictive”.
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Mr Avenatti has been vocal about his hopes to run for President in 2020.
The 47-year-old said that he was “seriously considering” challenging President Donald Trump in 2020, and even said that he was willing to get dirty if he did.
Mr Avenatti has recently visited states including Iowa, Ohio, Florida, New Hampshire, Pennsylvania and Illinois in a bid to drum up support.
The lawyer would run against Trump as a Democrat candidate.
He’s also been engaging with potential supporters in Hollywood.
He told The Hollywood Reporter in August: “A number of people have stepped forward and said that they would do whatever I needed in the way of financial support, as well as introductions, hosting events, things of that nature.”