The 37-year-old met Panangian when they were both serving time in jail.
One of her parole conditions is that she must stay clear off drugs. Fairfax media in Australia reported that the arrest could jeopardise her own freedom.
However, parole officer, Putu Andiyani, told Fairfax: "If it is her boyfriend, it will not affect her parole unless she was with him when the arrest happened."
Corby lives with her sister, Mercedes, in the tourist area of Kuta.
It is believed she now works at her sister's surfboard and swimwear shop on the island.
Corby has repeatedly maintained her innocence since her arrest at Bali airport in 2004. She was caught with cannabis in her boogie board bag.