Norris, 48, has always denied having anything to do with the racist killing of 18-year-old Stephen, who died of stab wounds in Eltham, south east London, in April 1993.
But in a dramatic development, a Parole Board ruling released on Thursday reveals claims that he now admits being involved in the assault.
It said: "After the trial, Mr Norris continued to deny the offence.
"Recent reports now suggest he has accepted he was present at the scene and punched the victim but claims that he did not wield the knife. He does not accept he holds racist views."
Under the joint enterprise law a defendant is guilty of murder if they are found to have assisted or encouraged the offence.
It comes after Stephen's dad Neville said he will accept Norris's release if he finally admits to the crime and apologises.
Neville said in January: "He would have to say he was sorry for killing Stephen and that he had changed his ways and apologise to our family [for me to accept his release].
"I am not satisfied with him getting parole but what I am saying is if he can show remorse and show he's changed then I will accept that."
Norris was finally jailed for Stephen's murder in 2012, and was given a minimum term of 14 years and three months which, due to time spent on remand, is nearly up.
The Parole Board said on Thursday that his forthcoming hearing will go ahead in public.
Norris told his Old Bailey trial that he had forgotten where he was on the night of the murder.
But he was clear that he had not been in Eltham at the time, saying he was an "innocent man".
His mother Theresa Norris was accused of inventing a false alibi by telling the jury her son was at home that night.
During questioning by prosecutor Mark Ellison QC, Norris was repeatedly asked what he had been doing when the teenager was killed, Norris said: "You are accusing me of murder. I am an innocent man."
At the time of the murder Norris was 16 and living with his mum and gangster dad Clifford in Chislehurst, Kent.
The teenager was later captured in a police surveillance video using extreme racist language to describe how he would kill black people, people of Pakistani origin and police officers.
Norris said in a clip shown at his trial: "I'd go down Catford [in South East London] and places like that, I am telling you now, with two sub-machine guns."
He talked about torturing a black person and setting them alight, saying: "I'd blow their two arms and legs off and say, 'Go on, you can swim home now".
The Parole Board report reveals how Norris still faces "continuing significant risks" to his safety in prison after being attacked three times by inmates. He was diagnosed w...