The Court of Criminal Appeal on Monday set aside the 33-year-old's convictions for murder and aggravated kidnapping, and ordered her to be retried for the offences.

She was refused bail, pending arraignment in the Supreme Court in February next year.

Batcheldor's lawyer, Matthew Barnes, told the Mercury his client was relieved at the outcome.

"She's very happy with the result, as were her family who have been with her all the way," he said.

"Appeals aren't often successful so it's a very good result; we'll just wait for a date for retrial now."

Mr Barnes said Batcheldor, who remains in Silverwater jail, might make a bid for bail in the coming months.

He could not indicate when the case would be reheard or whether it would be tried in the Illawarra or in Sydney.

Batcheldor was sentenced to an overall 24 years behind bars in November 2012 for Mr Digby's murder.

Convicting the woman, Justice Geoffrey Bellew found Mr Digby's death had stemmed from Batcheldor's discovery he had hocked a gold chain stolen from her home in early January 2010.

The 35-year-old's body was found chained to the front passenger seat of a burnt-out car at Mount Murray on January 25, 2010.

Batcheldor maintained her innocence throughout the lengthy trial and sentencing proceedings, announcing her intention to appeal the outcome immediately after she was jailed.

The court would not release its reasons for quashing Batcheldor's convictions, due to the retrial.

Her co-accused, Richard James Walsh, also appealed his conviction and sentence.

The Court of Criminal Appeal dismissed his case.

He will continue to serve his 28-year jail term.