The team made the move to create room on the 40-man roster for September call-ups, when the maximum number of players each team can carry expands from 25.
Bailey has been out since Aug. 16 with a flexor mass strain in his right arm.
Reds general manager Walt Jocketty said no decision has been made about whether Bailey will have surgery to fix the injury. Bailey, who has thrown two no-hitters in his career, posted a 9-6 record and a 3.71 ERA in 2014.
- Scooby Axson