The reality TV star, 53, was pulled over by police in Malibu, California for speeding, but was subsequently booked for driving under the influence and driving on a suspended licence.
She was later released on $5,000 (£3,125) bail.
Her representative has confirmed the arrest to TMZ.com, but has played down the incident, claiming Bollea was on her way home from an event in Los Angeles, where she had had a glass of champagne on an empty stomach.
News of Bollea's arrest emerged hours after footage from a sex tape purportedly featuring Hogan and a mystery brunette leaked online. The wrestling legend is now preparing to launch legal action to prevent the full film from being made public.
Bollea, also known as Linda Hogan, filed for divorce from her husband in 2007 after 23 years of marriage and their union was officially declared over in 2009.