The now 37-year-old wanted to be released to family in Hawkes Bay, but after concerns about victim contact and social issues, the Board rejected the request.
Luff then completed a prison programme and had further psychologist appointments to manage social and intimate partner rejection to lower his risk of re-offending.
His psychologist told the Parole Board that he has done well in his sessions and no further rehabilitation work was needed.
The Board now feels Luff has completed his treatment and poses no risk to the community.
Luff's life behind bars allowed him to become a high-achieving student, finishing his schooling, completing a bachelor's degree with honours in psychology and now currently working towards his PhD.
His achievements behind bars earned him the praise of the victim's widow.
On July 5 2002, Luff shot and killed Detective Constable Duncan Tylor, 39 and wounded Detective Jeanette Park.
The murder took place at his ex-girlfriend Stephanie Cocker's house when he attempted to visit her. Luff had become obsessed with Cocker, stalking her and showing up at her property.
The police were called to the property and warned Luff of the protection order that Cocker's family had put in place.
Luff, who had no previous convictions, shot Taylor in the chest at close range before firing at two other officers during a five-hour siege.
Conditions of his release include not being able to own or obtain a firearm or firearm licence, a curfew for the first few months and being electronically monitored until a review hearing in December.
Luff, who will live in the South Island, is also banned from travelling to the areas where the offending occurred, including Manawatu, Hawkes Bay and Whanganui.
He is set to be released towards the end of this month.