The First Hospital of China Medical University in the northeastern city of Shenyang said the 61-year-old democracy activist had respiratory failure and needed artificial ventilation to be kept alive.
"The hospital has explained the necessity of tracheal intubation to the patient's family, the family refused the tracheal intubation," the hospital said on its website.
The hospital, which earlier reported that he had suffered organ failure, said Liu's liver function had deteriorated despite three days of anti-infection and blood treatment.
The Chinese government has rebuffed international appeals to let Liu seek treatment abroad, saying he is getting the best possible care from top domestic doctors.
Also Read
Liu was admitted to the hospital early last month after he was transferred from prison due to late-stage liver cancer.
The United States repeated calls on Tuesday for Liu to be released and said it was ready to welcome him if he chose to be treated there.
US and German cancer experts visited Liu last weekend and determined that he was strong enough to be medically evacuated, but the hospital has issued pessimistic medical updates since then.
Before the latest update, human rights groups questioned the motives behind the daily medical reports, saying it showed the authorities may be trying to manipulate information.
"As the authorities are controlling all the information about Liu Xiaobo's health condition, it's difficult to verify if the information released on the hospital's website is true or not," Amnesty International's China researcher Patrick Poon told AFP.
Human Rights Watch's Asia researcher Maya Wang said there has been little information coming from Liu's family about his health, limiting the amount of independent updates.
"We simply don't know to what extent this is professional medical reports and to what extent this is politically- manipulated information," Wang said.
A video leaked earlier this week showed the Western doctors praising their Chinese counterparts as they stood by Liu's bedside.
Disclaimer: No Business Standard Journalist was involved in creation of this content