Daniel Wallis, 26, is serving a prison sentence of three years and three months after he was convicted of manslaughter.
In May last year, he admitted he killed his 5-month-old daughter Hope Elizabeth Wallis McFall-Schultz by smacking her head up to three times.
Counsel Kathy Basire said her client was not an undue risk to the community and could be released.
"Ms Basire particularly emphasised that there was nothing recommended with respect to programmes or treatment options for Mr Wallis within the prison environment," the decision said.
"There have been numerous support letters forwarded to the board ... showing support for him once he is released into the community."
Wallis admitted his offending had caused harm to many people and in hindsight he "could have reacted quite differently".
"The chances of being found in a similar situation may be relatively low, but the seriousness of his offending is at an extremely high level," the board said.
The board decided it was appropriate for Wallis to be seen by a psychologist who would have input into his release plan.
"Parole today is declined.
"The board is unable to clearly ascertain Mr Wallis’ risk and whether or not that remains undue."
Five-month-old Hope was born three months premature and was transferred to Dunedin Neonatal Unit shortly after her birth in August 2021.
A month after her release from hospital, Hope’s mother fed her and read her a book before settling her into her bassinet and leaving Wallis to look after the baby.
Later that night, the defendant called Hope’s grandmother figure several times, first explaining he was struggling to settle his baby and later saying he had dropped her and she was not breathing.
When the grandmother figure arrived, she saw that Hope was unresponsive, limp, pale and bleeding from her nose.
She rushed Hope to Invercargill Hospital while Wallis cleaned up the blood.
The defendant ran to the hospital afterwards but was denied access.
Later, police found him asleep in the carpark.
Hope was initially stabilised but died from her injuries five days later.
Wallis initially claimed Hope’s death was accidental and she had wriggled out of his arms and hit her head.
He claimed when he saw she was bleeding from her face he vomited in the sink and accidentally hit Hope’s head on the bench.
He later admitted: "Hope was forcefully smacked around the head, with an open hand, two or three times".
Wallis will next see the Parole Board in October.
