The decision, announced by the regional justice ministry in the southern state of Bavaria, comes seven months after Hoeness, who turns 63 on Monday, began a three-and-a-half year prison term.
Hoeness, who was sentenced for having cheated the state out of 28.5 million euros ($34.3 million), had already been released to spend Christmas and then New Year with his wife and family out of prison.
Bild daily published Friday a front-page photo of Hoeness on a snowy walk with his wife, Susi, under the headline “Hoeness is practising freedom”.
It said he was expected to soon begin work with the youth division of FC Bayern.
His new day-release regime will now permit him to pursue a regular job before returning to prison at 6:00 pm.
Hoeness, who was replaced as Bayern Munich president by Karl Hopfner, spent four decades at the Bundesliga champions, initially as a player, and also has a successful sausage business.
During his four-day trial in March last year, he admitted to hiding his wealth in secret Swiss bank accounts while obsessively “gambling” on stock and currency markets for years before seeking to come clean in return for immunity from prosecution.
But his January 2013 attempt to turn himself in to authorities was deemed too little too late.