"Her medical team advised her that she is making good progress on all fronts, and they are confident she will make a full recovery," Deputy Assistant Secretary of State Philippe Reines, who is also her spokesman, said in a statement.
In Twitter messages, Chelsea Clinton said her "mother was headed home. Her medical team confident she'll make a full recovery."
Hillary, 65, has not been seen in public since December 07, after a blood clot was discovered in a vein between her skull and the brain.
She was admitted to a New York hospital on Sunday after she fainted and fell down while recovering from a stomach infection.
"She's eager to get back to the office and we will keep you updated on her schedule as it becomes clearer in the coming days," the statement said.
"Both she and her family would like to express their appreciation for the excellent care she received from the doctors, nurses and staff at New York Presbyterian Hospital Columbia University Medical Centre," Reines said.
Hillary was earlier spotted briefly outside New York's Presbyterian Hospital-Columbia University Medical Centre accompanied by her husband former president Bill Clinton and daughter, but returned back quickly.
The doctors at the hospital said Hillary has suffered no neurological damage or stroke and was being treated with blood thinners.
The American Secretary of State has been out of her office for most of the December, being absent when Obama nominated Senator John Kerry as her successor and her illness also forced her to cancel scheduled testimony before the Congress over the attack on US diplomatic mission in Benghazi.
Washington: US Secretary of State Hillary Clinton was discharged from a New York hospital, three days after treatment for a potentially dangerous blood clot in her head, the State Department said.
First Published: Thursday, January 03, 2013, 07:59