Guy Turcotte, 42, was given bail two weeks ago while awaiting a new trial on two counts of first-degree murder.
That trial is scheduled to take place in September 2015.
The province's director of criminal and penal prosecutions filed a motion with the Quebec Court of Appeal this week, asking it to review the bail decision.
The motion was made public on Friday and a hearing is scheduled for Oct. 3 in Montreal.
In granting bail, Superior Court Justice Andre Vincent said Turcotte does not represent a danger to society and is entitled to the presumption of innocence as he awaits the new proceedings.
Vincent did lay out several conditions for Turcotte, including keeping the peace, respecting a 6 p.m.-6 a.m. curfew, reporting to provincial police twice a month and continuing his psychiatric treatment.
He must also stay with his uncle, while his brother had to post a $100,000 bond. Turcotte is also prohibited from being within 100 metres of the residence of his former spouse, Isabelle Gaston, the mother of the slain children.
Turcotte is charged in the stabbing deaths of Olivier, 5, and Anne-Sophie, 3, at a rented family home north of Montreal in early 2009.
A jury found him not criminally responsible in 2011 and he was released from a psychiatric institution the following year.
The appeals court overturned that verdict last November and ordered a new trial.