The son of late Adelaide Crows coach Phil Walsh is a step closer to freedom, with the South Australian Supreme Court allowing him supervised release for mental health rehabilitation.

Key points: Cy Walsh killed his father Crows coach Phil Walsh in 2015

Cy Walsh killed his father Crows coach Phil Walsh in 2015 He was found not guilty by mental incompetence in 2016

He was found not guilty by mental incompetence in 2016 Court today granted him supervised release for mental health rehabilitation

Cy Walsh was detained in a secure psychiatric facility indefinitely after being found to have been mentally incompetent when he killed his father Phil in 2015.

He has since been diagnosed with multiple sclerosis, and in May the Supreme Court granted him supervised medical release for treatment of that condition.

His lawyer foreshadowed that if it went well she would apply for another order to grant Cy Walsh further supervised release.

Prosecutor Lucy Boord told the court that the Director of Public Prosecutions didn't oppose the application.

"The Director is satisfied based on the reports of Dr Lim and Dr Furst that any risk can be adequately managed and we are not opposed to some further rehabilitative leave."

Justice Anne Bampton granted the order.

"Having regard to the reports of Dr Lim and Dr Furst I make an order … for Mr Walsh to have escorted leave for medical purposes and rehabilitation purposes," Justice Bampton said.

Cy Walsh watched the proceedings through a video link from the institution where he has been held and thanked the judge.

Adelaide Crows coach Phil Walsh and his wife Meredith. ( AAP/Facebook )

Phil Walsh was repeatedly stabbed in his Somerton Park home in Adelaide's beachside suburbs in July 2015.

The 55-year-old was the head coach of the Adelaide Football Club at the time.

Cy Walsh pleaded not guilty to murder by reason of mental incompetence and in September 2016 Justice Bampton formally made a ruling that he was not guilty of murder by reason of mental incompetence.

The court found he had undiagnosed and untreated schizophrenia at the time of the offence.