The 28-year-old double amputee is serving a five-year sentence; he was convicted last year following a seven-month trial. He is currently being held in the hospital ward of a Pretoria prison due to his physical disability.
"He has been recommended for correctional supervision on August 21. Normally, this will mean house arrest with one hour of free time each day. As he progresses, we will relax these conditions," Zach Modise, commissioner of the correctional services, was quoted by the news agency AFP as saying.
For his part, a Pistorius family member, who spoke on condition of anonymity, confirmed that "Oscar will be released on parole by the end of August," Reuters reported.
In October 2014, Pistorius was found guilty of culpable homicide and sentenced to five years in prison for shooting 29-year-old model and TV presenter Reeva Steenkamp on Valentine's Day in 2013.
State prosecutors have appealed against the culpable homicide conviction, saying that Pistorius should have been found guilty of murder. Their case is scheduled to be heard in November.
Earlier, Steenkamp's family reacted angrily to much-anticipated reports that due to good conduct, Pistorius could be released from jail already in August.