Malala left the hospital Thursday after doctors determined "she would benefit from being at home" with her parents and two brothers, The Daily Telegraph reported.
Malala, 15, was shot in the head in October as she was returning home from school. Officials said she was targeted because she refused to back down from her campaign for girls' education in Pakistan.
She was flown to Britain and was receiving treatment at Queen Elizabeth Hospital in Birmingham.
She is to undergo cranial reconstruction surgery either in late January or early February "as part of her long-term recovery," her doctors said.
Malala had been leaving the hospital for"home leave" visits to spend time with her parents and siblings at their "temporary home" in the West Midlands, officials said.
During those visits "assessments have been carried out by her medical team to ensure she can continue to make good progress outside the hospital," prompting the decision to release her even though she maintains her rehabilitation regimen, officials said.
Hospital Medical Director Dave Rosser said the teen is making "great progress in her treatment," the Telegraph said.
"Malala is a strong young woman and has worked hard with the people caring for her to make excellent progress in her recovery," he said.
Malala has said she wants to return to Pakistan, where she remains a target, officials told The Daily Telegraph.