VK Sasikala had been admitted to the hospital last week.
VK Sasikala, expelled AIADMK leader and a close aide of former Tamil Nadu Chief Minister J Jayalalithaa, will be discharged from hospital on Sunday. She had been admitted last week with complaints of fever and breathlessness and later tested positive for the coronavirus.
"Mrs Sasikala Natarajan has completed 10 days of treatment today. She has been asymptomatic and maintaining saturation without oxygen since three days. As per protocol, she can be released from hospital," a bulletin from the Bangalore Medical College said.
"The team of doctors attending to her have taken the decision that she is fit for discharge and she will be discharged tomorrow (31.01.2021) with advice of home quarantine," it added.
Earlier this week, the 66-year-old was formally released after spending four years in a Bengaluru jail in a corruption case. Jail officials wearing COVID-19 safety gear completed the formalities at the hospital on Wednesday.
A huge crowd of her supporters lined up outside her hospital, raising slogans in her favour and distributed sweets in celebration.
She had been rushed to the government's Bowring Hospital on January 20 after falling ill and had been transferred to Victoria Hospital the following day.
Ms Sasikala was sentenced to four years in prison in 2017 in the Rs 66 crore disproportionate assets case in which Jayalalithaa was the prime accused. Her sister-in-law J Ilavarasi and Jayalalithaa's foster son VN Sudhakaran were also convicted in the case.
Her time in the Bengaluru jail also saw allegation of her being given special treatment at the central jail where she was lodged.
Her release comes just months before the assembly election in Tamil Nadu.
At the height of her power, Ms Sasikala was a hugely influential force within the AIADMK and, if she can rediscover even some of that influence, she could emerge a key player in the election.
However, Tamil Nadu Chief Minister Edappadi K Palaniswami has ruled out talk of Ms Sasikala's re-entry into the ruling AIADMK, which is reportedly under pressure from its ally the BJP.