But Skaf will have to wait another four months until a decision could be made and plan formulated on how to safely reintegrate him into society.
Due to Skaf's classification in the prison system, he is not eligible for external leave.
He has a C2 classification that must be downgraded to the minimum security classification, C3, in order to be eligible for day release or external leave, which includes educational purposes or work.
No prisoner has ever been granted that classification if they have committed multiple sex offences, continue to deny responsibility and are considered an above-average risk of reoffending.
Corrective Services NSW's Serious Offenders Review Council will reassess the classification in July.
Speaking at the hearing on Friday, State Parole Authority chairman David Frearson SC said something had to be done.
"Skaf has been in custody for such a long time, and obviously if one pathway has exhausted and can't be achieved, clearly something has to be done.
"You can't just let someone out into the community [without gradual release and testing], it is too difficult."
He said authorities must consider the next best appropriate course and Skaf would need "considerable time" on parole.
Skaf only addressed the parole board once to say he understood proceedings.
The matter has been pushed back for a possible determination at an August 27 hearing.
Skaf would need to demonstrate exceptional circumstances to be granted leave after the Serious Offenders Review Council advised against it.
His lawyers will look to put forward exceptional circumstances and said there was a "question mark" as to whether external leave would ever be approved.
Skaf, who was 17 at the time, and his brother Bilal led a gang of at least 14 other men who committed a series of rapes in August and September 2000. His gang raped at least six schoolgirls, some as young as 14.
He has repeatedly denied responsibility and blamed his victims for the series of rapes that shocked the country.
Skaf was initially handed a 31-year jail term, but his sentence was slashed on appeal.
He was sentenced to 22 years, 11 months and 30 days in prison, with his jail term set to expire on January 1, 2024. He became eligible for parole in January 2018 but has had several appeals for parole knocked back.
Skaf has spent two decades behind bars, during which he has battled Hodgkin's lymphoma.
