The Parole Board wants Darnell Tupe, who was implicated in the 2001 Panmure RSA killings, to be allowed to leave prison on overnight stays.
William Bell received one of New Zealand's longest prison terms, of at least 30 years, for murdering three people at the RSA and leaving a fourth for dead.
Bell's getaway car driver Darnell Tupe is serving 12 years for manslaughter.
The Parole Board has declined his bid for parole, saying it will assess him again in January.
The board says Tupe is working three days a week in a sawmill and will soon begin escorted shopping outings.
The board says it accepts that Tupe is well on his way to reintegration but he should be tested with more frequent releases for longer periods, including overnight.