The NSW State Parole Authority on Friday granted Miller's release by June 21.
The 49-year-old former swimmer pleaded guilty to supplying a large commercial quantity of a prohibited drug and participating in a criminal group, and was sentenced in November 2022 to five years and six months' imprisonment, backdated to his arrest in February 2021.
His three-year non-parole period expired in February for those charges, but he was subsequently charged with further offences which had not yet been finalised, preventing his release.
The NSW District Court in May convicted Miller after he pleaded guilty to supplying more than 500 grams of methamphetamine, while another charge of participating in a criminal group was taken into account in his sentencing.
Scott Miller was devastated not to win Olympic gold, a court was told. (AP PHOTO)
Judge Andrew Scotting found special circumstances as the charges would have attracted partial accumulation in his sentence if they had been dealt with alongside the earlier offences.
"This is an unusual case," he said.
"It is rare for the court to be able to assess an offender at the end of their non-parole period ... the point has been reached where no further rehabilitative benefit will be obtained by keeping the offender in custody," he said.
He sentenced Miller to four years and three months with a non-parole period of one year, again backdated, and expiring less than a week later on May 15.
It allowed Miller to apply for parole again, under the provision of manifest injustice, meaning he could avoid a 12-month waiting period.
His release was granted following Community Corrections assessing Miller as having a low-medium risk of reoffending, recommending his release to supervised parole.
He had displayed some insight into his long history of substance abuse and problematic behaviour, and a comprehensive plan for his release and reintegration in the community had been developed, it said.
In addition to standard parole conditions, Miller must abstain from non-prescribed prohibited drugs and not communicate or associate with co-offenders without approval.
Miller remains on parole until the expiry of the May sentence in August 2027 unless revoked.
The former swimmer won a silver medal at the 1996 Atlanta Olympics in the butterfly event, and bronze in a medley relay.
The court was told he was devastated not to win gold and struggled to adjust to life after competitive sport.
He was not selected for the 2000 Sydney Olympics, after injuries and an introduction to drugs through the fashion and media industry contacts of his first wife during their brief marriage, Miller told the court.
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