The Universidad Catolica midfielder was released hours later after due paperwork and undergoing alcohol-level tests.
Medel is currently recovering from a knee injury, and therefore he is not included in Chile's World Cup qualifiers against Uruguay and Paraguay next month.
Medel had been arrested in Canada in July when Chile's under-20 team fought with police after they lost to Argentina in the junior world cup.
Medel has been red-carded many times while playing for Chile or his club, triggering warnings from coaches.
"If Gary does not solve his problems he may end his career before he begins it," Chile's U20 coach Jose Sulantay said.