Michael Cohen was serving a three-year sentence for tax fraud, campaign finance violations and lying before Congress.
According to CNN, Cohen - who was scheduled to be released from a federal facility in NY in November 2021 - will instead serve out his sentence in home confinement following 14 days in a prison camp quarantine.
Cohen began his sentence last May and was scheduled to be released from prison in November 2021.
Before being freed, Cohen will be faced with a 14-day quarantine period. Last month, his attorney wrote to a judge that the Bureau of Prisons was "demonstrably incapable of safeguarding and treating B.O.P. inmates" during the coronavirus pandemic, and asked that Cohen be moved to home confinement.
His pending release comes as the Bureau of Prisons, which has been under pressure for its early handling of the virus at its facilities, has been thinning out its prison populations by releasing some nonviolent and medically vulnerable inmates to home confinement or furloughing their sentences in response to the pandemic.
Many federal inmates have been seeking home confinement as the number of coronavirus cases grows in the federal prison system, but advocates have accused the Bureau of Prisons of moving too slowly to release inmates.
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A Bureau of Prisons spokeswoman said in a statement, "I am unable to address any specific offenders suitability for home confinement".
A number of other high-profile convicts, including financial fraudster Bernie Madoff and comedian Bill Cosby, have also appealed for release due to the virus.
CNN first reported Cohen was being released to home confinement.
A spokesman for the Manhattan US Attorney's office did not immediately respond to a request for comment.
Cohen, 53, was sent to a minimum-security camp at Otisville in upstate New York, about 110 km northwest of New York City.