The approval was given in board meeting held on Tuesday.
"Rajiv Bajaj, Managing Director and CEO of the company, whose five-year term expires on March 31, 2020, has been re-appointed for a further period of five years with effect from April 1, 2020," the company said in a filing to BSE.
However, the re-appointment of subject to approval of the shareholders of the company at the ensuing annual general meeting, it said.
The board also approved the appointment of Gita Piramal as independent director of the company, whose five-year term as independent director expires on March 31, 2020, as per the filing.
The shares of Bajaj Auto were trading at Rs 2,220.25 apiece on BSE, down 2.37 per cent from the previous close.