The former Leicester man is said to have crashed his Range Rover into a Skoda at approximately 12.30am, hours before the Blues 2-0 win over West Ham at Stamford Bridge.
The crash left debris scattered across the country road while a fence was also flattened.
According to Cheshire Police, the midfielder was arrested shortly after 12.30am on Monday.
The thrice-capped England international was released on unconditional bail ahead of a hearing at Stockport Magistrates’ Court next month.
Cheshire Police said: “A 29-year-old man from Nether Alderley was arrested on suspicion of drink driving. He is currently in custody assisting officers with their inquiries.
“Danny Drinkwater, of Bollington Lane, was arrested shortly after 12.30am on Monday 8 April following a one-vehicle collision on Ashley Road in Mere.
“He has been released on unconditional bail and is set to appear at Stockport Magistrates’ Court on Monday 13 May.”
Following the impressive win over the Hammers, a Chelsea spokesperson confirmed they were aware of the reports.
The club said: ‘We are aware of reports but we will want to establish all of the facts before commenting.’
Drinkwater and solicitor Beth Mantel, who he was travelling with at the time, were both treated for minor injuries along with Emma Brown, 30, who was driving the Skoda.
He and Mantel had attended a charity event in an upmarket bar called Victors in Hale, Greater Manchester, approximately six miles away from Drinkwater’s home, according to The Sun.
A source said: ‘It was a really nasty crash. Danny had been seen having a great night at the bar but it ended horribly. Pieces of the car he hit went flying.
“Danny’s been partying like mad recently but hopefully, this will be a wake up call telling him to slow down.”