Stewart Murray Wilson has been declined parole.
The Parole Board met yesterday at Whanganui Prison to consider his application.
Wilson was declined parole "as he still poses an undue risk to the safety of the community". Parole will be considered again in October.
He was paroled in 2012 to a house in the grounds of the prison after serving 18 years for various sexual crimes, but was recalled after using his cellphone to call a female he was instructed not to contact.
Previously he had been held on parole under strict conditions in a house in the grounds of Whanganui Prison at Kaitoke.
Wanganui Mayor Annette Main said Wilson must be released at some time and the community needed to understand there had to be a system which enabled those who committed crimes to be reintegrated.
"Although parole has been declined this time, we know it's possible that when he is eventually released from prison Mr Wilson will return to the house in the Whanganui Prison grounds under extremely strict conditions," Ms Main said.
"While we don't have any ability to prevent a person being paroled into our community, we are determined that we will continue to ensure our community is safe, and that Wanganui will be a safe place to live, to work and to raise our families."
She said when Wilson was released previously on parole, the Wanganui District Council was given a commitment by the Department of Corrections that if he breached any parole conditions he would be swiftly returned to prison.
The community safety group, formed by Ms Main and led by councillor Philippa Baker-Hogan when the decision was made to place Wilson in the prison house, encouraged anyone experiencing family safety concerns to seek support.
Support agencies offering 24-7 support include police (phone 111) and Women's Refuge Whanganui (06 3442204). Other support services include Whanganui Safe & Free (06 3433416), Family Works (06 3456681) and Relationships Aotearoa (06 3480027).
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