Thomas Raymond Pryce, 84, is accused of being involved in an altercation with 78-year-old Alan William Williams at the Brisbane aged care facility on February 21.
Pryce pushed Mr Williams who sustained a life-threatening head injury at the Aspley home in Brisbane's north, police allege.
Mr Williams was taken to hospital where he died two days later and Pryce was later charged with manslaughter.
Defence solicitor Josh Tiffin on Wednesday made a successful second attempt at applying for Pryce to be released without bail conditions.
After reading Mr Tiffin's written submissions, magistrate Andrew Moloney said he would grant the application.
"The (doctor's) report indicates he has advanced Alzheimer's dementia, which is severe," the magistrate said.
"Physically he is severely frail. He is a permanent resident in a secure, locked dementia ward."
Pryce had an impairment of the mind and could be released without bail conditions and into the care of his current aged care centre, he said.
Releasing Pryce into the care of a dementia ward would be "entirely appropriate in the circumstances," the police prosecutor said.
Mr Tiffin had last week withdrawn his first application to have Pryce released after magistrate John Costanzo said he could not grant it without more information and the aged care centre's consent.
The solicitor on Wednesday said he had hoped to have Pryce released into the care of his stepdaughter, Maryann Shiel, in case she wanted to change aged care providers.
"It's the seriousness of the charge. He's in a secure ward. If that were to change you would have to come back to court," Mr Moloney said.
Pryce was on police bail but had a warrant issued for his arrest for failing to appear in court previously.
The arrest warrant had been temporarily halted by Mr Costanzo until Pryce's bail situation was resolved and he was not present again on Wednesday.
Mr Moloney cancelled Pryce's arrest warrant and ordered the matter be heard again on April 27.
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