Police Commissioner Charles Ramsey took what police called "commissioner's direct action" on Wednesday in the case of Lt. Jonathan Josey following Sunday's events during a festival associated with the city's Puerto Rican Day parade.
Prosecutors earlier said a disorderly conduct charge against the woman was being withdrawn.
The 36-second video uploaded to YouTube and titled "Philadelphia Police Brutality" shows the woman crumpling to the ground after being struck Sunday in north Philadelphia. The woman appears to be bleeding from the mouth as she is led away in handcuffs.
Moments before the woman was hit, the video shows someone else throwing a liquid toward the officers. The woman was also seen spraying something from a can.
The president of the Philadelphia Fraternal Order of Police says Josey is eager to tell his side of the story to internal investigators.