"For the time being, the arrest warrant will remain in place," a spokeswoman for the Munich prosecution service said.
State prosecutors are waiting to receive more information about the fire, which gutted the Brazilian's house in the suburb of Grünewald on September 19, but his lawyer, Werner Leitner, has said he expects Breno to be released soon.
According to reports, prosecutors no longer feel there is a risk of Breno fleeing the country.
The 21-year-old Breno was arrested and taken into custody last Saturday on suspicion of causing the fire as authorities feared the defender might try to flee back to Brazil.
Before his arrest, the centre-back had sought psychiatric help at the renowned Max-Planck Psychiatry Institute and needs to have knee surgery once he is released.
Breno, who joined Bayern from Sao Paulo in 2008, had been briefly hospitalised for smoke inhalation after the blaze at his house, which is reported to have started in a guest room in the basement.
The property was completely gutted, but Breno's wife Renata, their son and two children from Renata's previous relationship were not at home at the time.
The cost of the damage ran to millions of euros.
German media had revealed that Breno – full name Vinicius Rodrigues Borges – had consulted a doctor at the Institute at his employers' behest, which Bayern later confirmed.
According to press reports, the centre-back's mental state could have been affected by the fact he is suffering from chronic knee pain that could threaten his career.
Breno has yet to make an appearance this season and has made just 21 league appearances in three seasons, after also spending six months on loan to Bundesliga side Nuremberg.