Williams was arrested by Frisco (Texas) police and jailed early Saturday morning on charges of public intoxication and leaving the scene of an accident, the Star-Telegram of Fort Worth reported. Both charges are misdemeanors.
Citing police records, the newspaper reported that police responded to the accident at 4:45 a.m. local time and found an abandoned 2017 blue Lamborghini that had hit a light pole.
After determining the owner of the vehicle, police arrested Williams near his residence and charged him with public intoxication. Williams was riding an electric bicycle in the road when police came upon him.
The team is aware of the arrest, the newspaper reported, citing a source. Williams was released from the Frisco Detention Center on a $369 bond.
"Terrance did not hit a light pole and there was no light pole even near the vehicle," attorney Chip Lewis said. "Secondly, his arrest was wholly unrelated to the traffic accident."
In a statement released by Lewis, Williams said an officer he had met previously arrested him without performing a sobriety test. Williams said he was returning to the scene on a scooter to meet a tow truck driver.
"I am grateful that no one was injured in the accident," Williams said in a statement. "The driver in front of me slammed on his brakes and I turned to the left and hopped the curb to avoid hitting him. I got his insurance information and my neighbor picked me up when my car wouldn't drive. I live right near where the accident occurred, so my neighbor dropped me off and I called a tow truck and took the scooter from my house to go meet the tow truck driver. The police officer, who I have met in the past in the neighborhood, saw me on the scooter and arrested me without performing any sobriety tests.
"I have always been an upstanding citizen and handled the situation the best way I know how. I apologize if I should have handled it a little bit differently."
Williams is still recuperating from a broken foot that has sidelined him for the Cowboys' offseason programs. He underwent surgery in February and is not expected to be ready until training camp.
The 28-year-old Williams is entering his sixth season with Dallas. He established a career high with 53 receptions last season.
The Cowboys overhauled their receiving corps in the offseason, cutting ties with longtime standout Dez Bryant and signing free agents Allen Hurns and Deonte Thompson. They also added a pair of receivers in the NFL Draft.
Williams has never missed a game since joining the Cowboys in 2013 as a third-round pick from Baylor. In 80 regular-season games, including 66 starts, Williams has 230 receptions, 3,359 receiving yards and 20 touchdowns. He also has eight receptions for 198 yards and three scores in three playoff games.