However, after another hearing on December 1 he was approved for release on February 8 next year.
The board said it was satisfied Dahlberg's low to moderate risk of re-offending could be managed so he would not pose an undue risk to the community, where "extensive and realistic support" was available.
The special conditions on his release include a lifelong ban on entering the Nelson province and on owning or possessing firearms.
Dahlberg is an uncle of a former national basketballer accused of taking part in a drunken taxi rampage in Singapore in which two men were assaulted.
Robert Dahlberg, 34, has skipped bail and his Nelson-based family says he has no plans to return.
A warrant for arrest has been issued for the former Junior Tall Black who was working as a broker, Singapore police confirmed.