Former world number four Blake, 35, and who is black, was leaving a plush Manhattan hotel on his way to the US Open when five white police officers approached him in connection with an investigation into the theft of mobile phones.
Blake said that after being shoved to the sidewalk, he was detained by five white plainclothes city police officers before a passer-by recognised him and he was released.
Blake, who had been scheduled to make a corporate appearance for Time-Warner Cable at the U.S. Open tournament in the borough of Queens, suffered a cut to his left elbow and bruises to his left leg.
"It was definitely scary and definitely crazy," Harvard-educated Blake told the newspaper.
But the New York native, who is black, stopped short of calling it racial profiling.
"I don't know if it's as simple as that," the 35-year-old Blake told the News.
"To me it's as simple as unnecessary police force, no matter what my race is.
"In my mind there's probably a race factor involved, but no matter what there's no reason for anybody to do that to anybody.
"You'd think they could say, 'Hey, we want to talk to you. We are looking into something.' I was just standing there. I wasn't running. It's not even close (to be OK). It's blatantly unnecessary."
The New York Police Department (NYPD) said that the incident was under investigation.
"Today James Blake was detained by police in midtown Manhattan in regards to an ongoing investigation into fraudulently purchased cell phones, after being misidentified by a cooperating witness," said a statement.
"Once Blake was properly identified and found to have no connection to the investigation, he was released from police custody immediately.
"In regards to the alleged improper use of force, the Police Commissioner directed the internal affairs bureau to investigate."
Investigators reviewed surveillance video of the incident and one officer has been placed on modified assignment, the NYPD said late on Wednesday.
Blake won 10 titles in his career, making almost $8 million, but last played on the tour in 2013.
Roger Federer, the sport's most successful player, praised Blake's reaction.
Read: Sleeping beauty Federer targets Wawrinka in final push
"You hope these things don't happen. Like I think James said it the right way. I have nothing else to really add to that," said the Swiss star.
Blake said he was telling the story to highlight the issue of excessive police force.
"I have resources to get to the bottom of this," he said.
"I have a voice. But what about someone who doesn't have those resources and doesn't have a voice?”
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