Ms Huxley was 18 in November 2005 when 39-year-old Robert Black Farmer entered her home in Northmead, in western Sydney.
He bound and beat her, then doused her in petrol, leaving her in a pool of blood and petrol as he set the property alight.
The teenager barely survived with horrific injuries, including permanent brain damage.
Farmer was sentenced to more than 24 years in prison in 2008.
The NSW State Parole Authority said on Thursday the serious offender's ongoing denial and community protection concerns were reasons behind its decision to refuse him parole.
It cited the expert advice of the Serious Offenders Review Council (SORC) which it relied on to reach its conclusions.
"We are not satisfied that his release to parole is sufficient for his re-integration and the protection of the public,'' the report said.
The council recommended he complete one-on-one risk mitigation sessions with a psychologist "given the horrific nature of his violent offence and his ongoing denial''.
The protection of the community, including the safety and wellbeing of victims and their families, was a priority in all decisions, the authority noted.
Ms Huxley's parents and sister are due to address the media after Farmer was refused parole.
Farmer will not be reconsidered for release until the anniversary of his sentencing in 2027 but has the right to apply for a review of the authority's decision.
The parole authority said he completed two offender programs but has not participated in the Violent Offenders Therapeutic Program.
The parole board also praised the Huxley family's advocacy and strength in the decades since the attack.
''The authority recognises the profound and enduring harm caused to Lauren and her family by this offending," the body said.
"We understand the concerns they have raised and that of the community."
The shocking case was brought to light again in 2025 when the ABC's Australian Story delved into the graphic details of the assault in which she was left nearly dead.
Ms Huxley's gruesome bashing and her public advocacy in the aftermath have captured international attention.
She met Pope Benedict XVI in 2008, weeks after Farmer was sentenced, during a ceremony in Sydney's inner city suburb of Darlinghurst, just metres away from the court where the offender was given the sentence.
Ms Huxley had expressed grave concerns about her attacker's possible release prior to the parole authority's decision during an interview with Nine's A Current Affair.
"It scares me for sure," she said earlier in May.
"Not just for myself, my family and friends, but also the general public. Because you don't know ... what is he capable of doing next?"
Farmer's total sentence expires on January 31, 2031.
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