The Managing Director of the International Monetary Fund, Dominique Strauss Kahn, has been charged with attempted rape in New York.
Prosecutors also charged him with committing a criminal sexual act and with unlawful imprisonment.
Mr Strauss-Kahn, 62, is expected to be brought before a state court judge later today.
His attorney, Benjamin Brafman, said in an email to Reuters that his client would plead not guilty.
The investigation began when a maid at the Sofitel New York hotel in Manhattan alleged she was assaulted.
The maid claimed the incident occurred when the IMF chief got out of his shower naked.
The IMF said its number two official, John Lipsky, will step in as acting managing director.
IMF spokesman William Murray said Mr Lipsky will meet with members of the IMF board today to inform them of developments.
Mr Strauss-Kahn is a well-known figure on the French political scene popularly known by his initials DSK.
He has not officially thrown his hat into the ring to challenge centre-right President Nicolas Sarkozy in next year's presidential race, but he had been widely expected to stand.
Polls released before news of his arrest broke had put him narrowly ahead of the pack, if he ran, with 26% of the vote.
Mr Strauss-Kahn had been due to meet with German Chancellor Angela Merkel in Berlin today to discuss an aid package for debt-laden Greece.
He was then due to attend a meeting of EU finance ministers on Monday and Tuesday in Brussels.