Mubarak, 84, sentenced to life in prison over the killing of protesters in the popular uprising against his rule was moved from the medical wing of Tora prison to a military hospital on June 19 after reportedly suffering a stroke.
He was said at the time to have had a series of strokes and to be on a life support machine. Reports that he was "clinically dead" were later denied.
Egyptian state media reported that Prosecutor General Abdel Maguid Mahmoud issued "an order to transfer former President Hosni Mubarak from the Maadi Armed Forces Hospital to Tora prison hospital after an improvement in his health."
Mahmoud's deputy, Adel al-Saeed, said that a panel of doctors had earlier established that the former president's "health is currently stable with medication, and it is considered good for someone of his age."
It was not immediately known when Mubarak would be transferred to prison.
Earlier this month, Mahmud had formed a committee of medical experts to look into Mubarak's health, and determine whether he could be moved back to prison.
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The doctors agreed that "Mubarak's health is currently stable with medication, and it is considered good for someone of his age," Saeed said.
The committee found "no reason for the convict to currently remain in the Armed Forces Hospital in Maadi or any other hospital" with special facilities, he was quoted as saying.
Mubarak's health was clouded in uncertainty following his move to hospital on June 19, with state media declaring him clinically dead on arrival at a military hospital.
On June 2, Mubarak, who ruled Egypt for three decades, was sentenced to life in prison for his involvement in the death of protesters during the 2011 uprising that ended his reign.