The two clubs, as expected, have finalised an agreement to keep Dike, 20, at Oakwell during the Championship clubs' participation in the end-of-season lottery.
An Orlando club statement read: "Orlando City SC and EFL Championship side Barnsley F.C. have reached an agreement. Daryl Dike the 20-year-old player, will remain on loan through the end of the EFL Championship Playoffs."
Speaking to The Yorkshire Post earlier this week, Barnsley chief executive officer Dane Murphy has reiterated that star striker Daryl Dike will be available for the play-offs - after the Reds’ participation in the end-of-season competition was confirmed on Sunday.
Dike, who joined on loan on the final day of the winter transfer window, has been a revelation since heading to Yorkshire - scoring nine times.
But with Orlando having a recall clause, there were concerns that the forward could return to his parent club.
An undisclosed fee is thought to have been agreed to keep Dike in England for the rest of the campaign.
Dike's performances have also created interest among rival English clubs and one has reportedly offered Orlando $10 million to sign him in the summer.
Barnsley themselves have an option to purchase Dike on a permanent basis.
Commenting on the situation with Dike earlier this week, Murphy said: “We have an extension through the end of the season, no matter what that day is. They (Orlando) have a recall that was built into the loan because of their MLS window, which had changed. It was originally May 5. (it is now in July)
“Our original loan was until May 2 and May 5 was the time he had to be back (by) before he was not allowed until July to play. They said: ‘Listen, he has to come back by May 5.’
“Now we have got to this point, we have an extension through to the end of our season, but the recall was left there in case we did not make the play-offs.
“As we may need him past the 2nd, we left that in there so that he could come back. Now that we are in the play-offs, we fully accept him to see out the season with us and push us as far as we can go.
“It has worked out for all three parties as best as it possibly could."