A spokesman said: "The Crown will have the opportunity to address the court during the hearing and it would not be appropriate for the Crown to make its position now out with the court."
Al-Megrahi was served a life sentence for blowing up Pan Am flight 103 from London to New York over Lockerbie, a Scottish town, on December 21, 1998. A total of 270 flight passengers and people on the ground died in the attack.
The life sentence holds a minimum term of 27 years. However, Al-Megrahi's lawyers are appealing the conviction.
Thursday's application is for release on bail pending the appeal which is expected next year.
Jim Swire, the father of one of the victims supported Al-Megrahi's provisional release.
"The man has reportedly got months to live," Swire, who was a spokesman for Lockerbie victims families' in the years after the disaster, said.
"My personal feelings are that to force him to remain segregated from his family and his five children for the short remaining time that he may have before him would amount to exquisite torture."
On October 21 Tony Kelly, Al-Megrahi's lawyer, said that his client had "advanced" prostate cancer which has spread to other areas of his body.