Norwegian television said on Monday prosecutors had immediately appealed the decision and asked for it to be suspended.
Hoiby has been in pre-trial detention since February and was sentenced in June to four years in prison for two counts of rape as well as domestic violence and other crimes.
Hoiby appealed the verdict, and an appeal trial is due to start in February to re-examine the allegations of rape and domestic violence against the defendant's former girlfriend.
The 29-year-old's detention has so far been extended by four weeks at a time.
He wears an ankle monitor and is confined to his home on a royal estate.
He must routinely report to police and submit to drug and alcohol testing in the coming month, the court ruled
At a closed-door hearing on Monday, two witnesses testified about how Hoiby is coping with pre-trial detention.
His lawyer had earlier told broadcaster TV2 that his client was finding the situation "unbearable".
Hoiby has most recently been serving his detention at home with an electronic ankle tag, staying with his mother and stepfather, King Haakon, at the Skaugum estate outside Oslo.
with Reuters
11°C