Otto (shoulder) had a setback early in spring camp and is expected to open the regular season on the injured list, per MLB.com.
The Padres claimed Otto off waivers from the Rangers on Thursday.
The Rangers designated Otto for assignment on Tuesday.
Otto was recalled from Triple-A Round Rock on Monday.
The Rangers optioned Otto to Triple-A Round Rock on Sunday.
The Rangers activated Otto (lat) from the 60-day injured list Friday.
Otto (lat) struck out three over three scoreless innings in his second rehab start Sunday with Triple-A Round Rock. He allowed one hit and no walks in the 44-pitch outing.
Otto (lat) allowed two runs on two hits while striking out four over three innings in a rehab outing for Triple-A Round Rock on Tuesday.
Otto (oblique) is set to begin a minor-league rehab assignment Tuesday with Triple-A Round Rock.
The Rangers placed Otto (lat) on the 60-day injured list Wednesday, Evan Grant of The Dallas Morning News reports.