The 32-year-old was granted parole after serving 11 years of a 20-year sentence for fatally stabbing Bulgarian law student Andrei Monov, 23, during a brawl in the capital Sofia in 2007.
Palfreeman will reportedly remain at the detention centre until he receives a new Australian passport but it is still unclear whether he will be extradited and when.
"If I go out on parole I want to continue my activity as a part of the Bulgarian Prisoners' Rehabilitation Association," he told the court, according to court documents released on Friday.
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