The government has announced funding of nearly $4.5 million spread over four years to help former inmates settle back into the community.

Corrections Minister Paul Swain says the money will be used to increase the number of re-integration co-ordinators from three to 16 by 2007.

The co-ordinators work with community and government agencies like Work and Income to ensure there are services in place when prisoners are released from jail.

"What happens to inmates when they walk out the prison gates has a huge bearing on whether they successfully rejoin the community or fall back into a life of crime," Swain says.

Offenders with the greatest needs will be identified as part of their assessment and sentence planning. Those offenders who need assistance with housing, employment and other intervention or support services, who also have a high risk of reoffending will be targeted.