The 25-year-old has been released on bail and will face a court hearing in Manchester on July 21 after he returned a blood alcohol reading of around twice the legal limit.
Faulkner, who helped Australia win this year's 50-over World Cup, has been playing for English county Lancashire this season.
"I have made contact with James to understand the facts of the matter," Cricket Australia executive general manager of team performance Pat Howard said in a statement.
"It is clear he made a very poor decision to get behind the wheel of a car after drinking and that decision had potential to cause serious harm to him and others."Faulkner apologised for his behaviour.
"I can't excuse my actions and understand that I have let people down," he said. "My decision to drive was an error in judgement.
"I apologise unreservedly and accept any penalty handed to me by Cricket Australia and the relevant authorities."Faulkner will not be selected for Lancashire's Twenty20 Blast match against Yorkshire later on Friday.
(Reporting by Ed Osmond, editing by Tony Jimenez)
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