The Manchester City defender was arrested yesterday over the alleged assault in Hale, near Altrincham, in the early hours of Christmas Eve.
According to the Manchester Evening News, Richards went to a police station for questioning and was released on bail.
It's thought that the alleged victim, believed to be 18, claimed to have been assaulted outside a club in Ashley Road, Hale, at about 12.30am on 24 December.
City say Richards hasn't been charged with any offence and denies any involvement.
"We can confirm that he attended a police station by appointment," said a City spokesman. "He is fully co-operating with the police with their inquiries. I would like to point out that he has not been charged with any offence and vigorously denies any involvement. The investigation continues and the club remains fully supportive."
A Greater Manchester Police spokesperson said: "A 20-year-old man has been arrested after an assault outside a Hale nightclub. The man was arrested on suspicion of section 47 assault by appointment on 4 February. He has been bailed until 8 April and enquiries are continuing."
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