The attacking midfielder spent the second round of the 2018/19 season out on loan at Iranian side Esteghlal from the Citizens.
Patosi had a successful spell with Tehran-based outfit, but the club decided not to retain his services and he returned to City.
The Citizens have since revealed that the diminutive playmaker has now joined Baniyas ahead of the 2019/20 campaign.
"Cape Town City and Baniyas Club have reached an agreement for midfielder Ayanda Patosi."
"The deal will see Ayanda spend one year on loan in the UAE Pro League, with an option to buy at a further fixed amount."
"We wish Pato well as he continues to dominate outside SA borders," a club statement read.
Patosi, 26, cemented his place in the Esterghlal starting line-up - scoring four goals in 13 Iranian Persian Gulf Pro League matches.
The Cape Town-born player also featured six times in the Asian Champions League for the Capital Blues.
Baniyas have since snapped up Patosi as they look to mount a serious challenge for the UAE Pro League title next season.
Patosi, who has represented South Africa at senior international level, will be looking to impress and hope that Baniyas purchase him from City.