Hospital medical director, Dr. Dave Rosser, said:
Malala is a strong young woman and has worked hard with the people caring for her to make excellent progress in her recovery.
Following discussions with Malala and her medical team, we decided that she would benefit from being at home with her parents and two brothers.
She will return to the hospital as an outpatient and our Therapies team will continue to work with her at home to supervise her onward care.
Malala became a global symbol of strength and courage when the young women's education activist was shot in the head by a Taliban assassin on a school bus in October. She had blogged for the BBC's "Diary of a Pakistani Schoolgirl," about attending school under the Taliban.