The 27-year-old denied murder by claiming that he mistook Steenkamp for an intruder when he fired four gunshots through a toilet door in his bathroom at his home in Pretoria in the early hours of Valentine's Day last year.
The state called for Pistorius to be denied bail because he could be deemed a greater flight risk after being convicted of a serious offence.
However, Judge Thokozile Masipa told the High Court that she was not persuaded by the state's case and will extend the double amputee's bail.
It was also agreed in court that Pistorius will return for sentencing in just over four weeks' time.
Culpable homicide carries a maximum sentence of 15 years in prison.