Annette Bongiorno was Madoff's longtime secretary. She was arrested in Florida last week along with another longtime worker on conspiracy and securities fraud charges.
The judge ruled Wednesday that the jailed Bongiorno could be released to house arrest in her Boca Raton home once details of the bail conditions are resolved.
The plan calls for her to eventually be moved to another home on Long Island while she awaits trial in New York.
Prosecutors allege the 62-year-old helped dupe Madoff's wealthy clients for decades. They also say she withdrew more than $14 million for herself.
She denies any wrongdoing.