Freedom is being considered for the man who savagely killed British backpacker Monica Cantwell in Mount Maunganui nearly 32 years ago.
Charles John Coulam was sentenced to life imprisonment for murder and assault to commit sexual violation in December 1989.
Cantwell, a British backpacker, was attacked on the summit of Mauao a month earlier. Coulam dragged her into bushes and raped her. She was strangled and her semi-naked body was left in the bushes and found three days later.
Coulam was arrested shortly afterwards.
Coulam, now 51, faced a Parole Board hearing on April 28. The decision was released today.
The board declined Coulam's release but ordered work be done to establish conditions pending his potential release on parole after he appears for a hearing again in five months.
Coulam has faced several unsuccessful parole hearings since becoming eligible in 1999.
Last year, board chairman Sir Ron Young said Coulam had a "complex mental illness" and while there had not been any further manifestation of sexual violence thoughts for many years, Coulam had difficulty understanding or seeing how others might view his offending, he said.
In 2019, the board confirmed Coulam had been caught accessing increasingly explicit pornography during night releases.
In the decision, Sir Ron said: "We are satisfied that he remains an undue risk."
The board suggested the appropriate authorities develop a detailed plan that could form the basis of Coulam's release plan for parole.
Sir Ron said it was "vital" these parties try to identify exactly where Coulam will live and what special conditions may be appropriate, as these could reflect conditions
Coulham had already been subject to in previous community releases "as well as longer-term risk-based special conditions for his parole".
Sir Ron requested an updated psychological assessment, update report and proposed release conditions for Coulam's next hearing.
Coulam is expected to next appear before the board by the end of October.