He is the youngest of three to be accused of killing Karol Kelly, 35, in Derry last year.
Mr Kelly was stabbed to death at Grafton Street in the Rosemount area of the city on March 4.
Three people have been charged with his murder – including the youngest defendant who was aged 17 at the time of the incident.
He is not being named amid ongoing legal issues.
His lawyers mounted a fresh application for bail amid plans to move him from Woodlands Juvenile Justice Centre to Hydebank Young Offenders Centre.
The court heard that an alleged threat to the teenager from two others currently being held at Hydebank has been assessed as “greater than initially thought… a live threat”.
Prosecution counsel Iryna Kennedy said if he was transferred those two would be moved to ensure they were not held together.
But defence barrister Plunkett Nugent claimed the pair could still wield influence even after any relocation.
“The threat may not necessarily be removed with them,” he contended.
Adjourning the application, Mr Justice McAlinden stressed that the teenage defendant will not be transferred without the necessary safeguards.
“This court is not going to make any order which could possibly put him at increased risk of harm,” he said.
“Unless and until this court is satisfied that steps will be taken to ensure his safety this court directs that no move from his present place of incarceration takes place.”
The case is to be reviewed again in a week’s time.