They served eight years before being released on license with lifelong anonymity, but Venables is now in jail for possession of child abuse images.
It is understood that he was told it would take two years before he could apply for parole again.
James’ father Ralph Bulger said: “This is the first time that the right decision has been made regarding my son’s killers.
“I’m so relieved because I was convinced he was going out – like he did before. “
Venables went to jail in 2010 for having child abuse footage on his laptop.
He was released in 2013 with another new identity, but in 2017 he was returned to prison for the same offense.
The images included category A photos, the most serious type, and he also admitted to having a “pedophile manual”.
Sentencing him to 40 months in prison in 2018, Judge Edis said: “The children depicted were often very young and vulnerable, the pain and distress are noticeable.”
Venables would normally be released after 20 months, but he cannot be released until the parole board recommends him as he has a lifetime license meaning he is on parole until his death. .
Mr Bulger said: “He may not stay in jail forever, but just knowing he’s behind bars means children are safe from him for at least two years.”
“I have always said that Venables is a dangerous predatory pedophile and should never be released from prison, but no one has listened until now.
“They let him out twice before and he always did it again.
“Now the parole officers have seen the light and have agreed that he cannot be released safely.
“I can’t express how much relief it is – I’ve spent the past few months dreading the phone call to say he’s back on the streets.
“He will never be sure to release him and I hope they apply his license to live and keep him locked up forever now.” ”
James was abducted from a shopping mall before being tortured and killed.
Mr Bulger said: “I always believed that Venables would kill another child again if he was allowed to return to the community.
“Maybe the parole board finally saw through its lies and deception.
“He’s a bow manipulator and knows how to play authority.
“But he fooled them once too often and now they have come out against him.
“It’s the only fair decision.
“Letting him out could be another death sentence for an innocent child like James.
“Since James was murdered so horribly, the courts have gone out of their way to deal with both Venables and Thompson.
“Now the tide has turned and finally he faces a real prison where he should have been from the start.