A serial sex offender due to be released from a NSW prison could be housed under the National Disability Insurance Scheme (NDIS), a Sydney court has heard.

Key points: The man has been charged with several sex offences against various women

The man has been charged with several sex offences against various women A psychiatric report described him as being "quite incapable of engaging in rehabilitation"

A psychiatric report described him as being "quite incapable of engaging in rehabilitation" The offender admitted to thoughts of hurting women, triggered by their clothing or they way they walked

The 46-year-old has been in custody for 21 years for offences against multiple victims and was one of four males who kidnapped Janine Balding, who was gang raped and murdered in 1988.

The man, who can't be named for legal reasons, is considered to be institutionalised and the NSW Government is fighting to keep him in jail for another two years after his total sentence expired in June.

The NSW Supreme Court today heard Corrective Services has had trouble finding the man accommodation, with many providers saying they cannot accept someone with his offending history.

The court heard the offender had consented to his information being exchanged for the purposes of application to the NDIS.

A corrections officer who works with high-risk offenders, told the court the NDIS could provide assistance with accommodation and her department had so far unsuccessfully attempted to find the man a vacancy elsewhere.

One of the only options with a vacancy, a Christian not-for-profit organisation, also housed a client who'd threatened to kill sex offenders.

'Incapable' of rehabilitation

Ms Balding, 20, was walking towards her car near Sutherland Railway Station in 1988 when she was kidnapped at knife point, gang-raped and murdered by a group of five.

She was bound, gagged and held underwater in a dam until she drowned.

The man, who was 15 at the time, was charged with kidnapping, robbery and sexual intercourse without consent.

He was sentenced to a minimum seven years in jail, and a maximum nine years and four months, in 1990 and released on parole in 1996, when he continued to rob and assault women.

He was also sentenced to a further 12 years for shocking attack on a woman at another railway station in 1998.

The offender was not charged over this assault until 2004 when DNA from the victim's clothing was matched to his own and a judge noted the "chilling similarities" with his earlier offences.

A psychiatric report once described him as being "quite incapable of engaging in rehabilitation".

He has taken part in sex offender treatment programs in prison, where he admitted his thoughts of hurting women could "happen in a second".

He said those thoughts were triggered by their clothing or "because of how they are walking down the street".

As recently as this year, the man was removed from a treatment program in jail due to ongoing difficulties managing his aggressive behaviour and his poor level of insight.

The offender is being held on an interim detention order which will expire in two weeks.