The world number one took a drop on the 15th hole during the second round after his shot onto the green ran into the water.
However, replays have shown that the 37-year-old dropped the ball two yards away from where he originally played the shot, which he confirmed in an interview at the end of his round.
The former European Ryder Cup team member, who is working as a pundit for Sky Sports News, said: "I think that interview would lead you to say no, they can't keep him in the tournament.
"The rule is very clear. He has taken the option to drop and play from where he played his last shot and it seems like Tiger has got a little bit confused in his mind.
"It's a very, very fine margin, but the way his thought process came about during the interview. I don't see how they can keep him in the tournament. I think he will end up being DQ'd on the back of the evidence he gave in that interview."
Woods has since received a two-shot penalty as a result of the incident.