Mr Little said the government plans to make the change to the Electoral Amendment Bill before the 2020 general election.
The law change will affect 1900 prisoners and means the law will return to how it was before a National-led government removed voting rights from all prisoners in 2010.
A Waitangi Tribunal report found that law change disproportionally impacted Māori prisoners and a High Court declaration stated the current law is inconsistent with the right to vote in the Bill of Rights Act.
Mr Little said the three-year jail sentence threshold means prisoners will be able to vote on the government that will be in power when they are released.
"It is right that someone who is going to be released back into the community during a Parliamentary term should have the right to have a say on who leads them during their time of freedom," Mr Little said in a statement.
Mr Little said the law change will also address concerns that prisoners are not re-enrolling to vote once they leave prison.
"The Waitangi Tribunal noted this means the law is effectively acting as a permanent ban on voting for prisoners. To address this, the law will also be changed so that longer-term prisoners will be enrolled on release.
"This will ensure people sentenced to three years or more in prison can re-engage with the democratic process as easily as possible."
