Indonesia's justice minister will sign Schapelle Corby's parole application in the next three days.
The decision means that the convicted drug smuggler could be out of Kerobokan Jail by the weekend.
But Justice Minister Amir Syamsuddin said Corby's application was one of hundreds and that the Queensland woman would get no special treatment.
The breakthrough was announced by Indonesia's foreign minister Marty Natalegawa at a brief press conference in Jakarta a few minutes ago.
If released this week Corby will have to stay in Bali on parole, and will most likely live with her sister Mercedes, who has an apartment in Kuta.
She will not be able to return to Australia until 2017.
She was initially sentenced to 20 years in prison after being caught with 4.2kg of cannabis in her body board bag in 2005, but the sentence was reduced by five years in 2012.
Corby has maintained her innocence since her arrest.