Avenatti became famous as Daniels' lawyer and pursued the president and those close to him relentlessly for months, taunting Trump in interviews and baiting him and his lawyers in tweets.
The Southern California attorney shot to fame with his impassioned attacks on Trump while representing Stormy Daniels, whose real name is Stephanie Clifford.
"They had no option in light of the allegations", he said.
Michael Avenatti, an outspoken critic of the president, has since been released on bail.
"We're told during today's confrontation the woman ran out of the apartment building and was on the sidewalk on her cellphone with sunglasses covering her eyes, screaming on the phone, 'I can't believe you did this to me, '" TMZ wrote.
Michael Avenatti appeared to portray himself as a victim during a brief press conference on Wednesday after he was arrested for alleged felony domestic violence.
He says he has been an advocate for women's rights and would never disrespect his children by "touching a woman inappropriately". A spokesman for his political action committee declined to comment.
Avenatti is also the lawyer for Julie Swetnick, who accused Supreme Court Justice Brett Kavanaugh of sexual misconduct that took place decades ago.
She goes by Christine Avenatti-Carlin on Twitter.
To keep the case from being dismissed, Avenatti is trying to convince a federal judge that it's in the public's interest to get more details about the motivation behind the hush deal and where the money came from.
"My client and I have reviewed the TMZ article alleging that my client, Lisa Storie-Avenatti, has been injured and that Michael Avenatti has been arrested as a result of some incident that occurred between them".
The Washington Post's Felicia Sonmez contributed reporting.