At one point there were reports that the 31-year-old five-time Olympic gold medallist would lose the use of his left arm, although they proved unfounded.
"It looks as though the infections have cleared up. It can always re-infect as it's done twice before but we are hopeful," his manager James Erskine told Australian Associated Press in confirming he was out of hospital.
Thorpe had broken his shoulder in a fall in Australia some months ago and Erskine said previously the swimmer known as "Thorpedo" would not be resuming his career in the pool.
He returned to racing in 2011 in Singapore but had a string of disappointing results leading up to his ultimately unsuccessful London Olympic bid the following year.
Since calling it quits for a second time in 2013, Thorpe has endured several health setbacks.
After using antidepressants and medication for a shoulder injury, the dazed swimmer was found by police early one morning in February near his parents' Sydney house disoriented and attempting to enter a parked van.
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