Ali, who turns 73 on Saturday, is receiving follow up care for a severe urinary tract infection but is expected to be released from hospital later today, family spokesman Bob Gunnell said.
"Ali hopes to celebrate his 73rd birthday on Saturday at home with his family," Mr Gunnell said.
Ali was admitted to an undisclosed hospital earlier this week. It was his second hospital visit in the last month.
The three-time former heavyweight champion was released from hospital on 7 January after a two-week stay for what was then thought to be pneumonia.
But doctors later found he had a severe bladder infection.
Ali, who is also an Olympic gold medallist, has suffered from Parkinson's disease since the 1980s.
Mr Gunnell said: "The Muhammad Ali family respectfully requests privacy. No further details are being released at this time."
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