The board says Harold Smeltzer needs close supervision and should not be allowed overnight leave.
But it ruled that day parole can continue for the 57-year-old.
The board first released Smeltzer on day parole in 2008 and, two years later, turned down a request for overnight leave from his Regina halfway house.
Smeltzer served 27 years of a life sentence for the murder of Kimberley Thompson, who was snatched off the street in 1980 while on her way to kindergarten.
He was also convicted of several other sexual assaults and has admitted to attacking more young girls.
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