An Otago man who rammed a police car and chased an officer with an axe while yelling "Allahu Akbar" is being housed in a specialist prison unit with the Christchurch mosque shooter. 

Ruairi Kern Taylor (26) is one of only 10 prisoners in the country in the Auckland-based Prisoners of Extreme Risk Unit, which was designed especially for those with "extremist views", in the wake of Brenton Tarrant's shooting spree in 2019. 

Taylor was declined early release for the third time when he appeared before the Parole Board last month. 

The report provided to the Otago Daily Times noted the inmate was transferred to Auckland Prison in October last year under the management of the Prisoners of Extreme Risk Directorate. 

"Given the serious nature of Mr Taylor's offending and involvement in past violent incidents within prison where he has been the perpetrator of violence against others, Mr Taylor's release from prison has been identified as a high risk period in terms of risk of ... [withheld] and a period where he will pose a risk to the safety of other members of the community," panel convener Judge Jane Lovell-Smith said. 

Taylor, who was described by Corrections staff as "very quiet", said he "did not have any idea" why he was in the maximum-security unit. 

On September 4, 2019, Taylor abruptly quit his job in Tapanui, bought a tomahawk in Gore, strapped a knife to his leg and drove off in his Subaru. 

After scouring the roads looking for police, he found Constable Steven Treloar sitting in his patrol vehicle, having pulled over a motorist. 

The defendant blasted ''religious music'' on his stereo and slammed into the back of the officer's stationary car before chasing the terrified officer with the axe. 

Police found Taylor beside the patrol car which he had extensively damaged using the weapon, wearing a police hat and jacket, yelling excerpts from the Koran. 

While behind bars he told a Corrections staffer he had planned to decapitate his victim and wave the disembodied head around so he would be shot by other officers, having considering the scenario for months. 

The Parole Board heard Taylor had been undergoing counselling since November and he was said to be engaging well. 

However, there was still a lot of work to put into his release plan, which would require "a multi-agency framework in order to address his myriad reintegration and rehabilitation needs prior to release", Judge Lovell-Smith said. 

Taylor would see the board again in June. 

His sentence expires in December.