Peterson had asked that his ankle monitor be removed. He posted a $300,000 bond to gain his release and surrendered his passport.
Peterson, 68, was freed late last year when Superior Court Judge Orlando Hudson ruled a SBI analyst misled jurors about the strength of bloodstain evidence in his 2003 trial.
He was convicted of first-degree murder in the 2001 death of Kathleen Peterson, who was found at the bottom of a bloody staircase in the couple's mansion. Peterson has maintained his wife died in an accidental fall.
In court Friday, Peterson's attorney said making him wear an ankle bracelet is cruel because he suffers from sciatica.
Kathleen Peterson's family was not sympathetic. Her two sisters spoke at the hearing and argued he should be sent back to jail.
Candace Zamperini said she doesn't feel safe and alleged Peterson threatened her in a film made about the case.
"We have suffered. I want him back in jail. You think I feel safe coming here? You think that ankle bracelet is enough? When he tries to intimate me through film?" she said.