The man who murdered teenager Karla Cardno in 1989 will remain behind bars for at least another two years.

Paul Joseph Dally has been in prison for 27 years after pleading guilty to murdering Karla in Lower Hutt in 1989.

At a hearing this month, the Parole Board heard Dally was beginning to prepare himself for a reintegration pathway but found it was "highly unlikely" he would be suitable for release within the next two years.

Dally had not applied for parole but the board met to consider whether to postpone his next hearing in front of the board.

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Counsel for Dally argued he had completed the psychological treatment recommended, his conduct was exemplary and he was the lead gardener for the unit.

Dally was working at the unit he was being held at and was completing a qualification in horticulture but acknowledged there was significant work ahead of him so far as reintegration was concerned.

The board acknowledged his progress and agreed he had reached the point where it was appropriate for him to prepare for some reintegration activities. For that reason the board did not make a postponement order although it was unlikely he would be suitable for release at his next hearing in two years' time, it said.

In 1989 Dally snatched Karla from her bike as she rode home from the local shops, dragging her to his house and repeatedly raping and torturing her for 22 hours.

He later put her naked, bound and gagged in the boot of his car and buried her alive in a shallow grave at Pencarrow Head.

Dally's next Parole Board hearing would be held by November 4, 2019.