Cleveland recently added Otero to its baseball operations department as an advanced scout, signaling the end of his playing career, Zack Meisel of The Athletic reports.
Otero was placed on the restricted list Tuesday.
Otero was released by the Yankees on Sunday but was immediately re-signed to a minor league contract and added to the 60-man player pool.
Otero signed a minor-league contract with the Yankees on Monday as a non-roster invitee.
Otero's club option for 2020 was declined and he became a free agent, Tom Withers of the Associated Press reports.
Otero (shoulder) was activated from the 60-day injured list by the Indians on Sunday, Mandy Bell of MLB.com reports.
Manager Terry Francona is hopeful that Otero (shoulder) will return Sept. 1, Ryan Lewis of the Akron Beacon Journal reports.
Otero (shoulder) is scheduled to pitch Friday and Saturday, Zack Meisel of The Athletic reports.
Otero (shoulder) will be re-evaluated Monday before the Indians determine whether he's ready to resume a minor-league rehab assignment, Anthony Castrovince of MLB.com reports.
Otero (shoulder) was shifted to the 60-day injured list Wednesday, Zack Meisel of The Athletic reports.