"Tests show a slow, gradual deterioration in the functioning of his vital organs...His state has not changed. He's still in critical condition, and his life is in danger," Tel Hashomer hospital director Zeev Rotstein said.
"Our tests show signs of a severe blood infection (sepsis)," Rotstein said, adding that the 85-year-old's health condition has "further deteriorated".
"Unfortunately, we see a multi-organ failure that is developing before our eyes, as can happen in such situations," he was quoted as saying by News website Ynet.
Asked if Sharon was in his final days, Rotshein was quoted as saying, "I personally feel so". The doctors treating him "remain hopeful", he added.
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Sharon, who has been comatose for almost eight years following a stroke in 2006 when he was the Prime Minister, was announced to have been in a critical condition yesterday as plans for a state funeral began to be discussed.
Sources privy to the family were quoted by Ynet as saying that Sharon's sons, Omri and Gilad, have come to terms with the situation and are preparing to bid their father farewell.
Sharon has been suffering from renal failure but was not expected to undergo dialysis due to the dangers the procedure could present given his fragile physical state.
Rostein had earlier said that Sharon had not undergone dialysis but was "still getting the same medical treatments he has been getting for years".
Having fought in three Middle Eastern wars, Sharon is revered by many Israelis as the "security man" and reviled by numerous in the Middle East as the "butcher of Sabra and Shatila".
He was nevertheless elected prime minister 18 years later, pledging to achieve "security and true peace", and served until his second stroke.