Teina Pora will go to court to challenge the Government's decision not to adjust his compensation package with inflation.
Private investigator Tim McKinnel, who led Mr Pora's innocence bid, says Mr Pora has instructed his legal team to draw up legal papers.
He was originally awarded over $2.5 million, after he was wrongly convicted and spent over 20 years in jail for the brutal rape and murder of Susan Burdett.
Justice Rodney Hansen, who advised on the amount Mr Pora should receive, recommended that inflation be taken into account over the years he was in prison - which would have dramatically increased the amount to over $3.3 million.
However, cabinet papers revealed that Justice Minister Amy Adams rejected advice to take inflation into account for his compensation, as inflation adjusting wasn't provided for in the original guidelines.
Mr McKinnel says Mr Pora "remains grateful to the minister" for the package, however the offer had included the right to seek judicial review, and this will now be taken up.