The Australian actor, who is best known for his role in Underbelly and as entertainment couple Bert and Patti Newton's son, has reportedly been encouraged to check out of the Northside West Private Clinic by his counsellors.
Family friends have told The Daily Telegraph that Newton's mental health professionals advised him to leave the Sydney centre where he has lived since last August amid concerns that he is becoming institutionalised.
The star was spotted getting out of a car in the city earlier this week, but his lawyer Chris Murphy has refused to comment about his rumoured release.
Newton entered rehab after allegedly attacking former girlfriend Rachael Taylor during a trip to Rome last year. He appeared in court last month after being accused of breaking his apprehended violence order conditions by trying to get in touch with Taylor.
Murphy has previously said that the actor has been suffering from social phobia and post-traumatic stress disorder, is prone to panic attacks and is manic depressive and obsessive compulsive.
His mother Patti is said to be "crushed" at her son's downfall and has told friends that public criticism of her mothering skills is like a "knife to her heart".