Francesco Schettino captained the ship with it struck a rock formation off the Tuscan coast on 13 January killing 32 people.
For almost three months he has been ordered to not leave his home without special permission.
The Genoa-based ship was carrying 4,200 passengers and crew at the time of the disaster off of Giglio Island.
Schettino is suspected to man slaughter for sailing the vessel off coarse and abandoning ship.
The Court of Cassation said Schettino could potentially compromise evidence because the investigation is still in progress.