Dessie O'Hare spent his first full day in Castlerea Prison in Roscommon yesterday, following his move from Portlaoise Prison on Sunday.
The so-called "Border Fox" is serving a 40-year sentence for the 1987 kidnapping and assault of the dentist Dr John O'Grady. He has been deemed to qualify for early release under the Belfast Agreement, and the move to a more open prison regime is a further step towards his release.
Some 58 prisoners were deemed eligible for early release under the scheme and O'Hare is the only prisoner now awaiting release. Some of those released would have been from prisons in Great Britain.
The Department of Justice has emphasised that no date has been set for O'Hare's release. A spokesman said the suggestion that O'Hare would be released within two years was "pure speculation".
However, prisoners who qualify for release under the Belfast Agreement are usually released fairly quickly once their qualification is established and they have served a certain period of time in prison.
In September 2000, O'Hare began a legal challenge for his accelerated release under the Belfast Agreement.
Last October, Mr Justice Ó Caoimh in the High Court said there should be "no foot-dragging" in the matter.
O'Hare's move to Castlerea was approved by the Minister for Justice, Mr McDowell, who was acting on the advice of the Release of Prisoners Commission.
In November 2000, the then Minister for Justice, Mr O'Donoghue, deemed that O'Hare was a qualifying prisoner for early release.
This was based on his INLA involvement. At court hearings, O'Hare described himself as an INLA member and an officer commanding the INLA in Portlaoise Prison.
Mr O'Donoghue referred the case to the Release of Prisoners Commission which was set up with the Criminal Justice (Release of Prisoners) Act 1998 to advise on such cases.
The commission gave its recommendation to Mr McDowell on July 31st this year. He has been considering the recommendation since then. The advice was based on psychological, psychiatric and security considerations.
O'Hare has been moved to a part of Castlerea Prison known as The Grove. This is a small development of seven houses inside the prison walls, but separate from the main prison building.
The Prison Service said prisoners in this section had "limited movement around that area". About 30 political and other prisoners are housed in the Grove, including the killers of Garda Jerry McCabe.