Chen, in jail since late 2008 pending trial, was convicted in 2009 of illegally taking US$ 20 million in public funds out of the country.
Chen has always claimed innocence, calling the charges politically motivated because he is an advocate of the island's independence from China.
The former president’s party, the Democratic Progressive Party, has also said that the case was used by other parties for political purposes.
Chen’s lawyers will determine whether to appeal again to the Supreme Court.
The life sentence and the hefty fine imposed on the defendant were roundly criticised for being too severe.
Some experts surmise that a lower sentence might calm a much-divided public.