Bauer has been away from the team since July 2 after a San Diego woman sought a domestic violence restraining order against him for allegedly injuring her during two sexual encounters earlier this year.
The woman claims the latest incident occurred in May. Bauer, through his representatives, continues to deny that he assaulted the woman.
Major League Baseball and the MLB Players Association have now agreed to extend Bauer's leave through what remains of the 2021 season, his co-agents, Jon Fetterolf and Rachel Luba, announced.
"Today Mr. Bauer agreed to extend his administrative leave through the playoffs in a measure of good faith and in an effort to minimize any distraction to the Dodgers organization and his teammates," they said in a statement issued to MLB.com. "He continues to cooperate with the MLB investigation and refute the baseless allegations against him."
The Pasadena, Calif., Police Department has submitted it findings to the Los Angeles County District Attorney's office, which will ultimately decide whether to pursue criminal charges against Bauer, while MLB's own investigation of the incidents remains ongoing, the website reported.
Bauer last pitched on June 28. He is set to receive about $4 million in salary over the period of his leave. Bauer signed a three-year, $102 million contract with the Dodgers in February.