The daughter of convicted killer Susan Neill-Fraser has described a court decision to grant the Hobart grandmother the right to another appeal as “one step” in a very long journey.

Neill-Fraser was convicted in 2010 of murdering Bob Chappell, 65, on Australia Day 2009 on the couple’s Four Winds yacht moored at Sandy Bay.

Chappell’s body has never been located, and Neill-Fraser has maintained her innocence.

On Thursday, the 65-year-old was granted leave in the Hobart supreme court to launch a fresh appeal against her murder conviction after a judge ruled there was “fresh and compelling” evidence in the case.

Justice Michael Brett found that evidence about the whereabouts of the then homeless teenager Meaghan Vass on the night of the murder, and her DNA, satisfied criteria to grant an appeal.

Vass’s DNA was found aboard the Four Winds yacht, but at the original trial she denied ever being on the boat.

The appeal bid concluded in February but was reopened this month to consider an affidavit from Vass that came to light after her appearance on a 60 Minutes program about the case.

Justice Brett said Vass’s affidavit, purportedly signed in February, stated that she was on the yacht the night of the murder with two male companions.

“She witnessed at least one of the males assault Mr Chappell. She recalls seeing a lot of blood,” he added.

Neill-Fraser smiled to family and supporters in a packed courtroom as the decision was delivered.

Her daughter Sarah Bowles held back tears when speaking to reporters outside court.

“This is just one step in the direction of what’s going to be a very long journey for us as a family,” she said.

“She’s an innocent woman and it’s time she came home and was with her grandchildren to have cuddles.”

Neill-Fraser was found guilty in 2010 of bludgeoning Chappell and dumping his body in the River Derwent.

Several appeals against her conviction have failed.

Justice Brett said he did not rule on the credibility of the evidence, only that it was “fresh and compelling”.

Neill-Fraser was able to apply for another appeal under Tasmanian laws introduced in 2015.