The 18-year-old, from the Geelong Falcons, has been linked to Melbourne (pick No.3) and Essendon (picks four and five) ahead of Tuesday's NAB AFL Draft in Adelaide.
"Police arrested an 18-year-old for being drunk in a public place after he was pulled over by police in the Greater Geelong area around 3.30 this morning," a Victoria Police spokesperson told AFL.com.au.
"The teen allegedly refused a preliminary breath test.
"It expected he will be charged on summons with a number offences."
It is understood Curnow was released from Geelong police station around 6am.
AFL club recruiting managers and key stakeholders were informed later on Friday by email.
In a statement to the clubs, the AFL said Curnow had made "a poor choice".
"He was pulled over by police for driving through a stop sign. A breath test was requested to which Charlie, in his moment of panic, refused," the statement said.
"He was taken to a police station. Charges against Charlie could be being drunk in public, refusing breath analysis and not displaying P-plates."
Curnow is a member of the NAB AFL Academy, and is seen as being among the most talented prospects in this year's pool.
The 191cm forward was about to shift into a midfield role mid-season before a kneecap injury saw him miss three months of the season.
He returned to star in several games for the Falcons, including their finals series, with his powerful marking and impact near goal impressing recruiters.
Curnow is the younger brother of Carlton midfielder Ed, and is a chance to be available at the Blues' picks eight and 11.
Clubs considering choosing Curnow will likely look for more information on Thursday night's incident ahead of next week's draft at the Adelaide Convention Centre.
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