A Victoria Supreme Court judge has granted bail to a young man with a profound intellectual disability after telling an earlier hearing he was "horrified" by the conditions the man was being detained in.

Key points: Francis detained because no NDIS providers would care for him

Francis detained because no NDIS providers would care for him A $1.5 million NDIS package has now been been allocated to him

A $1.5 million NDIS package has now been been allocated to him Francis will be released from prison on Monday

Disability Minister Martin Foley urgently intervened to remove Francis from prison earlier this month, after the ABC's 7.30 informed him the 20-year-old was being detained because under the National Disability Insurance Scheme (NDIS), no disability provider would take him on.

Francis has been detained on remand at the Melbourne Assessment Prison for two months under 23-hour lockdown. He was charged over an assault and has no criminal record.

But due to the government intervention, ACSO, a disability provider, has been found and will be funded by the $1.5 million NDIS package Francis has been allocated.

The court was told staff have been recruited to provide Francis around-the-clock care and will be ready to receive him at the house provided by DHHS by Monday, despite it still undergoing renovations.

But two ACSO employees gave evidence they would ideally like more time to train their staff, develop treatment plans and get to know Francis.

They told the hearing that without proper preparation, there was a considerable risk the young man would pose a danger to himself and their staff.

In handing down his ruling, Justice Lex Lasry acknowledged there was significant risk in releasing Francis from jail but his current situation could not be allowed to continue.

"The longer he stays there the more he will be damaged," he said.

"Whilst a risk exists in relation to the way he may conduct himself upon being released … it is a risk that in my opinion is acceptable, though I agree it is significant."

Justice Lasry had told an earlier hearing he was "horrified" by what appeared to have been happening at the Melbourne Assessment Prison and would do whatever he could to resolve the situation.

Prison stressful for Francis, mother says

Francis' mother Janet said it had been extremely stressful for her son who did not know why he was in prison.

Janet says her son Francis does not understand why he is in jail. ( ABC News )

"The environment where he'll be going back to will be completely different to the one he left and we have a great support group around us," she said.

"Everybody just can't do enough and are all working around the clock to … give him the life he should have."

Janet said she never expected they would find themselves in a situation where no disability provider would support Francis.

"The promises that the parents were made that we could sit down and work out our [treatment] plans … just never happened," she said.

Victoria Legal Aid Mental Health and Disability Advocacy program manager Sonia Law said his case highlights the need for a disability provider of last resort.

"Without the intervention of the Department of Health and Human Services, Francis would not be getting the services he needs to exit custody," she said.

Francis will be released from prison on Monday.