The ENE striking Longmu Co fault and the North Altyn Tagh left-lateral slip fault have led to the complex regional structure in the northwestern Tibetan Plateau, resulting in a series of normal faulting and strike slip faulting earthquakes. Using both the ascending and descending Sentinel-1A/B radar images, we depict the coseismic deformation caused by the 2020 Yutian Mw 6.4 earthquake with a peak subsidence of ~ 20 cm. We determine the seismogenic fault geometry by applying the Bayesian approach with a Markov Chain Monte Carlo sampling method, which can better characterize the posterior probability density functions of the source model parameters. The estimation results reveal that the earthquake is a normal faulting event with a moderate strike slip component. Based on the optimal fault geometry model, we extend the fault plane and invert for the distributed coseismic slip model. The optimal slip model shows that the coseismic slip is mainly concentrated at shallow depths of 3–10 km with a maximum slip of ~ 1.0 m. Our preferred geodetic coseismic model exhibits no surface rupture, which may likely be due to the shallow slip deficit in the uppermost crust. We calculate the combined loading effect of the Coulomb failure stress changes induced by the coseismic dislocations and postseismic viscoelastic relaxation of the 2008 Mw 7.1, 2012 Mw 6.4 and 2014 Mw 6.9 Yutian events. Our study demonstrates that the three preceding major Yutian shocks were insufficient to trigger the 2020 Yutian earthquake, which we consider perhaps reflects the natural release of elastic strain accumulated mainly through localized tectonic movement. We attribute the 2020 Yutian event to the release of extensional stress in a stepover zone controlled by the Longmu Co and the North Altyn Tagh sinistral strike slip fault systems. The seismic risk in the southwest end of the North Altyn Tagh fault has been elevated by the Yutian earthquake sequences, which require future attention.