Jon Venables, who along with his 10-year-old friend Robert Thompson killed the toddler in 1993, was returned to prison in 2010.
One of the killers of Merseyside toddler James Bulger, is to be freed from prison.
Earlier this year James's mother, Denise Fergus, and father, Ralph Bulger, both addressed Venables' parole hearing and pushed for him to remain in prison.
Venables, now in his 30s, had his parole revoked in 2010 and was jailed for two years after admitting having the indecent images.
He was originally jailed for life alongside 10-year-old classmate Robert Thompson in 1993 for the abduction, torture and murder of James in Bootle.
The two boys were released on licence with new identities in 2001.
Mrs Fergus, who broke the news of Venables' release on her Twitter page, said: "I am disturbed that they have handed us this information on the dot of five-o'clock in the afternoon.
"I got a call from the Probation Service, but they only told me that the parole has been approved and that preparations are being made for his release.
"I have not been told what conditions they are going to impose and even whether he will still be banned from entering the county of Merseyside."
She added: "I've been fighting for justice for James for 20 years now and I will continue to do so."
James's father, Ralph Bulger, said in a statement issued through his solicitor, Robin Makin, that his family was "disappointed and dismayed" by the decision.
"In 2011 the Parole Board determined that it was 'not safe' for Jon Venables to be released. It is not known what has changed. No reasons for the decision have been given."
Mr Makin added: "The decision to release Jon Venables is misguided and fills Ralph with terror.
"Ralph fears that an innocent person may be mistaken for Jon Venables and be injured or even killed. If such occurs then Ralph will feel guilty of not having done enough to have prevented such an obvious tragedy."
A spokesman for the Parole Board said today: "We've had confirmation that all parties have been told and we can confirm that it was a release decision. He (Venables) will be released."
A Ministry of Justice spokesman said: "The re-release of life-licensed offenders is directed by the independent Parole Board once they are satisfied they can be safely managed in the community.
"Their life licence lasts for the rest of their lives, and they may be recalled to prison at any time for breaching their licence conditions.
"Additionally, they will be subject to strict controls and restrictions for as long as their risk requires them."
Venables' former solicitor Laurence Lee said: "My thoughts go out to Denise Fergus and the rest of James Bulger's family. But the Parole Board have decided that he can be freed and he can't be kept inside forever.
"Jon Venables may be at liberty but he will never be free."
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