Kinson Cheung and three other former University of Hong Kong student leaders were sentenced to two years in jail last October after they had "glorified" a knife attack on a police officer.
They were initially charged with "advocating terrorism" under a national security law imposed by Beijing in 2020 to quash massive pro-democracy protests in Hong Kong the year before.
That charge was dropped when they agreed to plead guilty to the lesser common law offence of "inciting to wound with intent".
They later appealed against the sentence, which was reduced to 15 months, and Cheung then applied for early release for good behaviour.
However, the National Security Committee (NSC), established after the imposition of the 2020 security law, stepped in on Tuesday to prevent Cheung's release.
It said his early release "would be contrary to national security interests", according to a government lawyer who read out the decision.
The NSC said Cheung's crime now "constitutes an offence endangering national security".
The committee is Hong Kong's top decision-making body on national security issues. Its resolutions are immune to legal challenges and must be observed by all the city's institutions, including the courts.
Judge Anna Lai, handpicked by the government to hear security cases, said she was "duty-bound to implement" the committee's decision.
"The NSC decision is not amenable to judicial review and no institution, including the judiciary, shall interfere with its work," Lai said.
Prisoners jailed in Hong Kong under common law offences have routinely received one-third sentence reductions for good behaviour.
However, a second security law enacted by Hong Kong in March makes clear that such an option is not available for those convicted of national security offences.
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