According to the police summary of facts, Matthews knew the dog was aggressive and all the children knew to stay away from him.
The dog was chained to a disused vehicle at the side of the property and a female pitbull was also at the property.
All the children at the address knew about the male dog and had been told to stay away from it because of its aggressive nature, the summary said.
While chained up, the dog was easily accessible from the side of the house and the only fencing was between the neighbouring property.
The toddler walked out the door to where the dogs were and was set upon by the male pitbull. She was bitten three times - once in the forehead which "de-gloved" the skin, and suffered puncture wounds on her hand and chest.
She required hospital treatment.
Matthews was remanded at large to reappear in the Rotorua District Court on February 18.
The dog was seized by Rotorua District Council's animal control unit after the attack and is being kept in the pound until a judge orders whether or not it should be destroyed.