A prototype clinical brain SPECT insert has been designed for use in simultaneous SPECT/MRI. The system utilises novel slit-slat collimators which, like pinhole collimators, suffers from parallax errors due to the large incident angle of photons. A statistical algorithm has been developed to determine the depth-of-interaction (DOI) with a view to improving image performance. The importance of DOI correction was demonstrated using Monte Carlo simulation. This simulation also indicated that 4 DOI layers (3×1.5 mm+3.5 mm) may be sufficient. The improvement in event localisation was demonstrated on a single detector before implementing the algorithm on the full clinical prototype where some limitations in event localisation in layers close to the readout plane were observed. Nevertheless DOI enabled the rejection of poorly localised events with improved resolution in reconstructed line sources.