Hill was seen on video posted to social media face down on the ground as officers placed his hands behind his back and put him in handcuffs.
Sources told ESPN's Jeff Darlington that Hill was stopped for speeding and then got into a verbal altercation with police and was subsequently placed in handcuffs.
Hill was cited for reckless driving, sources told Darlington.
The traffic incident happened about one block away from the stadium, the team said. Several teammates saw the incident and stopped to offer support, according to the team.
The Miami-Dade Police Department released a statement from Director Stephanie V. Daniels, who requested an "immediate review" of the incident.
"We are aware of the recent detainment of Miami Dolphins player Tyreek Hill by Miami-Dade Police Department officers," she said in the statement. "I have requested an immediate review of all details surrounding the incident, and we are also reviewing available body camera footage. We will provide updates as further information becomes available."
In an interview with ESPN, Hill's agent, Drew Rosenhaus, called it "a heartbreaking situation" that was "completely unnecessary." He said he wants to make sure his client wasn't mistreated and that seeing his client handcuffed was "mind-boggling."
"We will investigate," Rosenhaus said. "We will look out for Tyreek."
He added that he was "just thankful Tyreek is OK" and thanked the team for helping to deescalate the situation.
ESPN's Adam Schefter contributed to this report.