Since her last hearing, the board said, she had made "positive progress" on a release to work scheme and was a minimum-security prisoner with no behavioural problems, the board said.
"Ms Fenton and her case manager have presented a comprehensive and strong release and safety plan with a strong support network," the board said.
It withheld details of where she would live, but said Fenton had a guaranteed job and supported accommodation.
The board imposed special release conditions for five years, including a 10pm to 5am curfew, no communication with the other murderers and a ban from central and west Auckland and Rotorua.
She will have a follow-up hearing before the board in August to see how she is going.
Mr Mullins' daughter Leigh-Anne Mullins could not be contacted last night, but when Bowman was released, she said she was "pissed off" at the news.
"I've been through hell with it," she said at the time.
"April 1, 1999, my father got murdered. I still remember the day I got the phone call from my aunty telling me [and] I can remember like yesterday when the police handed me dad's warehouse and the mess in there.
"I had to clean it up - the blood-stained mattress and the blood on the stairs."