Pope Francis is showing a "good response" to his treatment for double pneumonia and his doctors have determined his prognosis is no longer guarded, the Vatican says.
Francis, 88, has been in Rome's Gemelli hospital for more than three weeks.
He was admitted on February 14 with a severe respiratory infection that has required evolving treatment.
Doctors have decided to keep the Pope hospitalised for several more days to receive treatment.
The doctors said in an update that the Pope remains stable and has consolidated improvements in recent days, as determined by blood tests and positive responses to drug treatments.
The Vatican said the doctors had lifted their previous "guarded" prognosis, meaning they determined he was no longer in imminent danger as a result of the original respiratory infection he arrived with on February 14.
But their caution remained.
"However, in view of the complexity of the clinical picture and the important infectious picture presented on admission, it will be necessary to continue medical drug therapy in a hospital setting for additional days," according to the Vatican statement.
In a sign of his improved health, the Pope followed the Vatican's week-long spiritual retreat via videoconference on Monday in both the morning and afternoon sessions.
As he did on Sunday, Francis participated in the retreat remotely from the Rome hospital where he is being treated.
He could see and hear the Reverend Roberto Pasolini, preacher of the papal household, but the priests, bishops and cardinals gathered for the retreat in the Vatican auditorium could not see or hear him.
with Reuters
