Alex Aleti Seu (36) has been locked up since March 2017 and may serve her entire prison term, which expires in July next year.
Her incarceration has been blighted with issues outside her control and last year she received an apology from Corrections because of repeated delays in her access to rehabilitation.
At a hearing last month the Parole Board received a report from a psychologist noting Seu had now completed 30 one-on-one sessions while at Auckland Prison.
While drugs were not a feature of her offending, the clinician recommended she undertake the Drug Treatment Programme before being released.
"Ms Seu expresses willingness and, indeed, enthusiasm to undertake the programme as it will provide her with additional tools in her toolbox and preparation for her ultimate release," said panel convener Judge Charles Blackie.
In 2016, the prisoner had been at the theatre while her victim had been watching an All Blacks game in an Octagon bar, the court heard at sentencing.
According to court documents, she pursued him along George St before dragging him into a darkened alleyway, where a range of sex acts took place.
The victim fled but Seu followed him down Great King St and into the grounds of a church, where the violations continued.
She was also convicted of several indecent assaults against ex-housemates which took place in the ensuing months.
A sentence of six years nine months’ imprisonment was imposed.
Seu had previously sought release to a residence specifically for transgender people but the board heard finding appropriate accommodation had been "a problem".
Judge Blackie declined parole.
Seu will see the board again in May by which time she should have completed her treatment, strengthened her release plan and made strides towards finding accommodation, Judge Blackie said.
