Kuti had surrendered to Lagos police on May 15, after a video of him apparently punching a police officer went viral.
An arrest warrant had been issued on May 13.
"He was a released on bail this evening," lawyer Femi Falana said late on Tuesday, without giving further details.
The video shows Kuti on a road in Lagos, shouting and pushing a policeman.
Police spokesman Benjamin Hundeyin said that it was normal "to place on cuffs any suspect who has shown propensity for violence and propensity for evading justice."
A court hearing is expected to take place on Wednesday.
"The ongoing investigation will be detailed, transparent, professionally pursued; and justice will be manifestly served," Hundeyin added in a statement released on Twitter.
Kuti, 40, is the youngest son of Fela Kuti, who drove Afrobeat — a powerful mix of funk and jazz — to global fame in the 1980s.
A charismatic figure and activist who was bitterly critical of Nigeria's military regimes and corrupt elite, Fela Kuti died in 1997 but retains a fervent following today.
His son started playing in his band Egypt 80, at the age of nine and took the helm when he was just 14, after his father died.
In 2019, Kuti and the group were nominated for a Grammy for their album Black Times in the Global Music category.