The Corrections Department has agreed to take another look at whether a woman who is dying in prison should be released early.

Vicki Letele, 35, is eight months into a sentence of three years and two months for fraud.

She has terminal cancer and is expected to live for five months. The mother-of-three wants to spend her remaining time with her family.

The Parole Board has decided that Letele does not meet the exceptional circumstances test for early release.

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But Collins revealed this afternoon that the Corrections Department would reconsider its position.

Until now, the department has opposed early compassionate release and has told the board that she is being adequately cared for in prison.

"Corrections chief executive Ray Smith has spoken to me today on this matter and advised me that he's asked the chief doctor at Corrections to review the decision," Collins said.

"It's ultimately a decision for the parole board but obviously Corrections makes recommendations. So they're reviewing [if] Corrections can properly look after the prisoner."

Asked what prompted the about-turn by Corrections, she said: "These things are apparently often reviewed, particularly when there's a terminal illness."

The review is expected to take a week.

In March this year, Vicki Letele, a former mortgage broker, was convicted of 10 charges of dishonestly using a document to enable low-income families to obtain home loans.

Her family, which includes boxer Dave Letele, was upset that she would not be released until she had a few days to live.