The 45-year-old actor was caught "drunk and naked" in his suite at the Plaza Hotel in New York – where he had been staying with his ex-wife Denise Richards and their two children, Sam, six, and five-year-old Lola – when officers arrived at his room at around 2am this morning (26.10.10) following a call to 911 from security staff.
Charlie was voluntarily taken to the New York Hospital half an hour later with his ex-spouse, who was staying in a nearby room with their kids, where sources told TMZ he was "intoxicated, irrational" and "emotionally disturbed."
It is believed he is now set to have a psychiatric evaluation following an outburst in the hotel room, where he reportedly threw tables and chairs across the room and damaged a chandelier.
Charlie apparently told police he had been "out partying" before returning to his room later on with the "unidentified woman" – who is widely believed to have been an escort and was also said to be "unharmed".
It has been reported the outburst began after Charlie struggled to locate his wallet.
However, his spokesperson has claimed the incident was down to an "allergic reaction" to medication.
He told CNN: "Charlie had an adverse allergic reaction to some medication. He was taken to the hospital, where is expected to be released tomorrow."
In August, Charlie pleaded guilty to misdemeanour assault on his estranged wife Brooke Mueller last Christmas Day (25.12.09).
He was sentenced to 30 days in rehab and given a 30-day suspended prison sentence after agreeing a plea bargain deal on charges relating to a domestic incident with wife Brooke Mueller last Christmas Day (25.12.09).
He was also sentenced to three months probation and must complete 36 hours of domestic violence counselling.