Teina Pora will be able to immediately receive the wrongful imprisonment compensation payment set by Cabinet and still challenge the amount, the government says.
Mr Pora and his legal team asked the government to allow a legal review of the $2,520,949.42 compensation offer.
Mr Pora was awarded the money in recognition of the 21 years he wrongly spent in prison.
But it was not adjusted for inflation, despite a recommendation from the retired judge who considered the issue.
The head of Mr Pora's legal team, Jonathan Krebs, said they thought the payout should be significantly higher.
Justice Minister Amy Adams said the Crown would pay Mr Pora as soon as it had the necessary information from his lawyers.
She said he could still challenge the decision not to apply inflation to the non-pecuniary losses portion of the compensation payout.