The felon, who was serving a 10-year sentence for second-degree murder, is set to be released Thursday from the Chillicothe Correctional Center in Chillicothe, MO ... and we've learned it's going to be a secretive process.

Karen Pojmann, Communications Director for the Missouri Department of Corrections, tells TMZ ... no one will be allowed on the premises for Gypsy's upcoming release, which means no media, fans or spectators.

The parking lot is off limits too ... and we're told it's all about protecting prison staff, ensuring safety at the prison, and protecting Gypsy's privacy.

Gypsy's exact time of release is also being kept under wraps and she's not interested in talking to media during her exit ... even though she's been giving interviews from prison ahead of her high-profile release.

We're told Gypsy wanted her release to be super low-key... and the prison is keeping things close to the vest here because of her fame.

Gypsy was granted parole in September and is being released 3 years early. In 2016 she was sentenced to a decade behind bars after being convicted in her mother's murder. The prison says her release process is a year in the making ... with officials taking time to make sure all the I's are dotted and the T's are crossed.

Once Gypsy leaves custody, we're told corrections officials are hoping she can go on to be successful and lead a normal life.

During Gypsy's 7 years in prison, we're told she took photography and videography classes, got involved with the media team and explored higher education opportunities.

Now that Gypsy's being released on parole, we're told she has a plan for where she's going to live and how she's going to keep up with her parole officer.