There's now hope for the family of terminally ill prisoner Vicki Letele.

Vicki Letele, who has cancer, is eight months into a prison sentence of more than three years for fraud.

The Department of Corrections has now confirmed it's referred Letele's case to the Parole Board Chairman under S41 of the Parole Act.

This means the Parole Board can consider directing that she be released on compassionate grounds.

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Corrections Chief Executive Ray Smith says cancer is an awful thing and he feels saddened by Letele's circumstances.

He says he can understand that she and her children and wider family will want to be together to care for each other in the coming months.

He says the case will now be determined by the Parole Board.

Letele has been given just months to live.