The state Department of Corrections and Community Supervision said Kozlowski, who was convicted of conspiracy, fraud and grand larceny, could be released as early as Jan. 17.
The New York Times reported Kozlowski was granted parole on his second attempt, having been turned down by the Parole Board in April 2012.
At that time, the Parole Board said the former chief executive officer of the company that specializes in electronic security systems, was not "compatible with the welfare of society at large."
Mark Swartz, the former Tyco chief financial officer, who was convicted on similar charges, was granted parole in October, the Times said.
Kozlowski was moved in January to a minimum security facility in Manhattan as part of a work-release program. Since April, he has been living at his home and going to work with frequent check-ins.
His lawyer would not say where he is working, the Times said.
Kozlowski's penchant for luxury was highlighted during his trial, when it came out his Upper East Side home sported a $15,000 umbrella stand and a $6,000 shower curtain, the Times said.