The 26-year-old was detained by police officers here after the low-speed accident in the wee hours of Wednesday morning, reports contactmusic.com.
Lohan was pulling her Porsche Cayenne into a parking space in downtown Manhattan when she collided with a man standing nearby, hitting his knee, reports tmz.com.
As a passenger in the car checked the damage, Lohan is alleged to have walked to her nearby hotel, prompting a witness to call cops.
Officers arrived at the location and arrested Lohan outside the hotel, and she was later booked for leaving the scene of an accident. She has since been released from custody.