The man who beheaded a fellow passenger on a Greyhound bus in Manitoba has been approved to move from a mental hospital to a group home in Winnipeg.

Vince Li killed Tim McLean during the bus trip on the TransCanada Highway near Portage La Prairie in July 2008.

He was later found to be not criminally responsible for the murder due to mental illness.

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Li has resided ever since at the Selkirk Mental Health Centre but has been given increasing freedoms, including unsupervised outings in Selkirk and Winnipeg.

A public rally will be held Saturday afternoon at the Manitoba legislature called "Justice for Tim McLean."

McLean's mother, Carol de Delley, says she will attend.

"My heart drops because this is solidifying my fear that I've had since the beginning of this," she said Friday.

"I've been trying to make people aware of the fact that this individual is going to be walking amongst us again. And it's just now that he's actually going to be out in the neighbourhood that people are starting to hear what I've been saying."

Justice officials have said Li was suffering from untreated schizophrenia at the time. Doctors have praised his response to treatment and believe he is a low risk to re-offend because he's taking the medication he needs.

"Recently the board dealt with a request from the hospital to increase privileges for Mr. Li so that the hospital could grant an extended pass to reside at a Level 5 group home in the city of Winnipeg," John Stefaniuk, chair of the Manitoba Criminal Code Review Board, said Friday.

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At a hearing at the board in February, doctors recommended he move to a psychiatric unit at Winnipeg's Health Sciences Centre and "with continuous assessment" possibly be allowed to move to a Level 5 group home in Winnipeg.

It's not known if Li has yet made the move, or the location of the facility where he may be staying.

Stefaniuk said a level 5 group home typically has 24 hour staffing, supervision and administration of medication, and "at the very least a curfew."