Hill, who will be a sophomore this season and is competing for the starting quarterback job, was arrested just before 3 a.m. on a public intoxication charge, according to the Bryan-College Station Eagle.
Texas A&M athletic department spokesman Alan Cannon confirmed that Hill is "suspended indefinitely from all athletic activities per athletics department policy."
According to the Eagle, which obtained the police reports, Hill was arrested at Chimy's, a College Station restaurant and bar, after being found passed out in front of the establishment. He later posted bail and was released.
Hill, a 6-foot-1, 215-pound quarterback from Southlake (Texas) Carroll High School, appeared in five games last season. He was 16-of-22 passing for 183 yards and a touchdown in relief duty. He is competing with senior Matt Joeckel and true freshman Kyle Allen this spring for the right to succeed former Texas A&M quarterback Johnny Manziel as the Aggies' starter.