The decision stated he remained an undue risk and with the appropriate accommodation not currently available to Brady on the outside, the board declined the application.
When Brady is released he will be subject to an extended supervision order (ESO) for five years. The order allows Corrections to monitor and manage high-risk sex offenders who have returned to the community.
Brady's latest lag, which he is serving at Whanganui Prison, was handed down for his unlawful sexual connection with a male over 16 and wounding with intent to injure.
According to Stuff, Brady had met the teen at a service station and asked him to join him on a walk home.
Brady then suggested a shortcut before taking him through an empty section, punching him in the head and raping him.
The sexual offending occurred only three weeks after Brady was released from prison on parole for raping a 51-year-old in her home in September 2001, Stuff reported.
According to the latest Parole Board decision, Brady has completed extensive psychological treatment but still remained a moderate to high risk of sexual offending, and a high risk of violent offending.
The board said a multidisciplinary team has confirmed a facility, which was not named in the decision, was the most appropriate accommodation for the recidivist offender.
Brady acknowledged he needed help with the transition from prison after being locked up for so long.
"He understands what the facility can assist him with and that he will also be able to access the support that he has developed for himself," the decision stated.
But currently, there is no confirmed bed date for Brady, giving rise to the board declining this month's consideration of parole.
However, the board said there was merit in Brady being released "slightly earlier" than Christmas so that he had time on parole before the "shutdown" period.
Before he goes before the board again next month, he has been asked to provide a copy of his safety plan.
The board also wants Brady to take part in guided releases and a reintegration hui before the next hearing.