"We feel that it is in Asad's best interests, as well as those of the sport and the event itself," explained International Cricket Council (ICC) chief executive David Richardson.
The ICC declined to comment on what the police are reportedly investigating.
Rauf, 57, has been on the ICC's elite panel of umpires since April 2006.
He was one of the umpires in the controversial Indian Premier League match that saw Rajasthan Royals players S Sreesanth, Ajit Chandila and Ankeet Chavan arrested for alleged spot-fixing.
A former first-class batsman, Rauf began officiating in 1998 and stood in his first one-day international in 2000.
He was elevated to the ODI panel in 2004, officiated in his first Test the following year and has now stood in 98 ODIs, 48 Test matches and 23 Twenty20 internationals.
The 2013 Champions Trophy will be held from 6 to 23 June in England and Wales, with matches held at The Oval, Edgbaston and the Swalec Stadium.
Asad Rauf has been withdrawn from the Champions Trophy in June after media reports that the Pakistani umpire is being investigated by police in India.