The `Careless Whisper` singer is currently in hospital in Vienna, Austria, but has been moved out of the intensive care unit as he showed a "significant improvement" in his condition since he was admitted a week ago.
The 48-year-old singer had been in isolation, but his family and rumoured boyfriend Fadi Fawaz have now been able to join him as his condition improves.
In a joint statement Professors Gottfried Locker and Christoph Zielinski, of the AKH hospital where George is being treated, said: "The latest development in Mr. Michael`s case, which has evolved from a severe pneumococcal infection, necessitated intensive care due to its severity and extension.
"We are happy to announce that Mr Michael is improving. There are no other health issues with regards to the patient other than the underlying pneumonic disorder.
"Mr Michael is receiving precisely the same treatment as any ordinary patient in Austria would receive at the hospital for this disease."
As well as Fadi, George has been joined in Austria by his 75-year-old father Kyriacos Panayiotou and older sisters Melanie, 49, and Yioda, 53. George`s former boyfriend, Kenny Goss, is also thought to be flying out to join his family.
A family friend told the Daily Mail newspaper: "His whole family are with him. They are very close knit all of them. The family are around him. They are such a close family I can`t tell you. They all love each other."
Another friend added: "Kenny of course is very concerned. Kenny has been very supportive throughout this. He is planning to come. He`s been in touch every single day. They are very close still. Kenny and George will always be the best of friends."
Friends now hope the singer could be transferred to a British hospital before Christmas. George had to cancel the rest of his `Symphonica Tour` after being taken ill.