Details about the arrest, first reported by Comcast SportsNet Northwest, were not immediately released by the Eugene Police Department. Hill entered a not guilty plea to misdemeanor charges of menacing and criminal mischief. His next court appearance is scheduled for Jan. 21.
Oregon coach Mark Helfrich released a statement Monday that said the team would wait until the legal process has finished before making a further determination of Hill's status.
"We expect every member of our program to hold themselves to a high standard of conduct and to represent this University with class, pride and integrity. We will wait until the legal process has concluded before making any final determination of Troy Hill's status."
Hill played as a backup in 11 games, with 29 tackles overall, including 21 solo. He also broke up four passes and forced a fumble.
The Ducks went 10-2 this season and play Texas (8-4) in the Valero Alamo Bowl Dec. 30 in San Antonio.
Hill and fellow defensive back Erick Dargan were suspended for the Ducks' game against Oregon State for an unspecified violation of team rules. Oregon finished the regular season with a 36-35 victory over the in-state rival Beavers on Nov. 29.
Oregon sophomore tight end Pharaoh Brown was suspended for the Alamo Bowl because of his role in an on-campus snowball fight that got out of hand when passing motorists were pelted.
Both Brown and Helfrich apologized for the snowball attack, which the coach called "completely unacceptable and dangerous." The snowball fight was posted on YouTube and went viral.
Brown caught 10 passes during the regular season and scored two touchdowns. He started five of the nine games in which he appeared, getting more playing time after starting tight end Colt Lyerla left the team in October following a one-game suspension for violating team rules.
Lyerla was later arrested for cocaine possession and is awaiting trial after pleading not guilty.