The 28-year-old woman was allegedly assaulted at a licensed venue in Bondi on Saturday, 17 December.
ABC reports the Wallabies player was arrested in Kingsford about 2.30pm yesterday after a vehicle he was travelling in was stopped on Rainbow Street.
The 34-year-old has been taken to Waverley Police Station where he is currently being questioned and is expected to be charged.
Beale has played most of his career with the NSW Waratahs but also had a short spell at Melbourne Rebels.
He joined French team Racing 92 on a two-year deal in 2020.
At the conclusion of his contract he returned home to the Waratahs.
Beale was one of 44 players named earlier this month for a Wallabies four-day camp on the Gold Coast, with the Rugby World Cup looming in September.
He has played more than 90 games for the Wallabies in a career that spans more than 10 years.