The Home Secretary will now decide when Tracey Connelly will be allowed to leave jail and on what conditions.
Baby P's mother, Tracey Connelly, is to be freed from prison on the order of the Parole Board.
Connelly was jailed indefinitely with a minimum of five years in May 2009 forcausing or allowing her son Peter's death.
The Parole Board has recommended her release following a second review of her case.
A statement from the board said: "We can confirm that a three-member panel of the board has directed the release of Tracey Connelly.
"Tracey Connelly first became eligible for parole in August 2012, and at that time a Parole Board panel made no recommendation to release.
"Arrangements and the date of the release are a matter for the Secretary of State."
Baby Peter died on August 3, 2007, aged 17 months with more than 50 injuries.
This was despite being on the at-risk register and receiving 60 visits from social workers, police and health professionals over eight months.
Connelly admitted the offence soon after being charged and served several hundred days on remand.
Connelly was given a so-called imprisonment for public protection (IPP) sentence, which carries a minimum term.
An IPP sentence prisoner is eligible to be considered for release by the Parole Board when the minimum term is served.
When making its decision, the Parole Board takes into account a variety of matters including the nature of the offence, the prisoner's offending history and their behaviour in prison.
Reports from psychologists, probation officers and prison officers are also taken into consideration.
Her son died at his home in Tottenham, north London, a day after police told Connelly she would not be prosecuted for abusing him.
Connelly was jailed along with her boyfriend Steven Barker and his brother Jason Owen, who were convicted of the same offence.
Barker was sentenced to life with a minimum of 10 years for raping a two-year-old girl and given a 12-year term to run concurrently for his "major role" in Peter's death.
Owen was jailed indefinitely with a minimum three-year term but later won an appeal to lower it to a fixed six-year term.
He was freed in August 2011 but was then recalled to prison again in April this year.