The murderer, named only as 'A', was given a life sentence for crimes committed while a man, reports the Sun.
She was sentenced to five years in jail for manslaughter after strangling a boyfriend with a pair of tights. Some time later her release, she tried to rape a woman shop assistant after tying her with a suspender belt.
'A', who grew breasts after undergoing hormone treatment and wears skirts and make-up in her cell, has also been allowed to have full sex-change surgery, from which she was previously banned while in a male prison.
Deputy Judge David Elvin QC said 'A' had endured gender dysphoria from an early age, and Justice Secretary Jack Straw's decision to keep her in a male prison breached the European Convention on Human Rights.
Attorneys said 'A' was "a woman trapped in a man's body" and the ruling "gave her hope".