The `Last Christmas` singer is being treated for pneumonia at Vienna-s AKH hospital in Austria, and while his condition has improved since he was admitted two weeks ago, he is likely to remain under the supervision of doctors over the festive season.
His boyfriend Fadi Fawaz, 38, said: "George is on the mend, but it looks like he will be celebrating Christmas in the hospital. I spend every day at his bedside."
George cancelled the 14 remaining dates on his `Symphonica Tour` when he was taken ill at the end of November, and specialists are worried his voice could be permanently affected by his illness.
Ear, nose and throat surgeon Gerrit Wohlt has said: "In the worst case scenario, being on a ventilator could harm his vocal cords. He will need months of rest.
"It depends how long he spends on the ventilator, but in the worst case his illness could seriously affect his singing capacity. The pressure is very close to his vocal cords and it could affect them."
George`s family - 75-year-old father Kyriacos Panayiotou, who is known as Jack Panos, and sisters Melanie, 49, and 53-year-old Yioda - flew out to Vienna to support him, joining Fadi who has been at his bedside since he was taken to hospital.
A friend said: "His whole family are with him. They are very close-knit. George is just such a lucky man in that sense. He`s so adored."