The indictment was handed down by a federal grand jury in New York, which has been investigating the matter for several years.
The exact charges against Trump will not be known until the indictment is officially unsealed in the coming days.
The former President lashed out in a lengthy statement.
According to the indictment, Trump directed his former attorney Michael Cohen to make payments to Daniels in order to keep her from publicly discussing an alleged affair she had with Trump in 2006. Cohen has already pleaded guilty to charges related to the payments, and has implicated Trump in the scheme.
If convicted, Trump could face significant fines and possibly even jail time.
Trump has repeatedly denied any wrongdoing in the matter, and has called the investigation a politically motivated witch hunt.
This is a breaking news update.