New Zealand's most violent inmate, double-murderer Graeme Burton, has been moved off directed segregation, following a legal challenge by career criminal and serial jailhouse litigant Arthur Taylor.

Burton has been on 23 hours a day lockdown and has had no contact with other inmates at Auckland's maximum security prison, Paremoremo, for almost three years.

He earned his spot in the prison's notorious D-Block, which up until last week only held Taylor, ''Houdini'' jail-breaker Aaron Forden and rapist Tony Adamson, for trying to kill Head Hunters gang member Dwayne Marsh in December 2008.

Burton, who at the time was serving a life sentence with a non-parole period of 26 years for shooting Karl Kuchenbecker, stabbed Marsh 27 times with a make-shift weapon.

One blow punctured Marsh's heart and he only survived the ordeal after undergoing emergency surgery.

Burton was later found guilty of attempted murder over the incident.

According to the Department of Corrections, directed segregation can only be used where a prisoner is considered a threat to other inmates, or presents an unnecessary disruption to the good order and safety of the prison.

Prisoners can only be placed on the regime for three month periods, after which time the decision must be reviewed by a visiting justice.

Last week Corrections sought to extend Burton's time on the programme, but the request was denied by Justice Shelley Sage, in part because of written arguments put forward by Taylor.

Corrections today confirmed Burton, who is not eligible for parole until 2033, was no longer on directed segregation, but ''remains a maximum security prisoner''.

A spokesperson said Burton's movements would continue to be closely managed and he wouldn't mix with the general prison population.

''He is on an individual management plan designed to address his risks,'' the spokesperson said.

''The plan determines how much time Burton spends out of his cell and what prisoners he will associate with. It is designed to ensure the prisoner, other prisoners and staff are safe.''

The spokesperson would not discuss specifics.

When sentencing Burton for attacking Marsh, Justice Tony Randerson said expert psychology reports showed the killer was a narcissistic sociopath with a highly manipulative personality.

He was also an ongoing risk with a high likelihood of further offending, Randerson said.

Crown prosecutor Deb Bell said Burton, who has more than 113 previous convictions, showed extreme premeditated violence and posed an ongoing risk to fellow inmates - and the public if he ever got out of jail.

Burton murdered Kuchenbecker, 26, when the father of two was riding his quad bike in the eastern Hutt hills near his Wainuiomata home on January 6, 2007.

Four mountain bikers were also injured by Burton, who was hiding from police after a violent rampage across Wellington which began shortly after he was paroled, having served 14 years for murdering Paul Anderson in 1992.

A shootout with police resulted in Burton having his right leg amputated just above the knee.

Burton's release sparked widespread criticism of both the Corrections Department and the Parole Board.