Teina Pora is to seek a judicial review of the Government’s decision not to take inflation into account in compensation paid to him for spending 21 years in jail for a rape and murder he did not commit.

LISTEN ABOVE: Chris Gallavin spoke to Rachel Smalley about the compensation guidelines

Mr Pora was paid $2.5 million in June with the Government agreeing to make the payment and allow Mr Pora considered challenging the inflation aspect in court.

His advocate, private investigator Tim McKinnel, reportedly said Mr Pora has decided to make the challenge and that papers are being prepared.

This comes after cabinet papers released under the Official Information Act showed that Justice Minister Amy Adams rejected advice that Mr Pora’s compensation package should include an inflation component.

Massey University Law Expert Chris Gallavin told Rachel Smalley compared with other compensation cases, Pora's figure is an incongruous one.

"Seems to be right from the start of this process that the government have treated the guidelines as if they were hard and fast rules. In fact the guidelines are saying the starting point is only $100,00 a year."

Mr Gallavin said Pora's impending judicial review will really test the guidelines around compensation.