Boris Johnson has been released from intensive care where he has been treated for coronavirus, and moved back to a ward.
But the Prime Minister will remain in hospital for observation during the early phase of his recovery.
Mr Johnson was rushed to St Thomas' Hospital on Sunday night after his symptoms worsened - and was moved into intensive care on Monday.
He's been receiving oxygen treatment, but his condition was described as "stable."
And yesterday he was said to have been "sitting up in bed" as his condition improved.
Tonight, a Number 10 spokesman said: "The Prime Minister has been moved this evening from intensive care back to the ward, where he will receive close monitoring during the early phase of his recovery."
The spokesman added: "He is in extremely good spirits."
Boris Johnson's partner, Carrie Symonds tweeted a child's picture of a rainbow, alongside a series of clapping-hands emojis at 8pm, as people around the country took to their doorsteps to applaud NHS heroes.
Ms Symonds has been self-isolating at home after showing symptoms of the disease.
Labour leader Keir Starmer said: "This is good news. I hope it is the beginnings of a speedy recovery."
US President Donald Trump tweeted his relief at the news.
He wrote: "Great News: Prime Minister Boris Johnson has just been moved out of Intensive Care. Get well Boris!!!"
Speaking earlier today, a Number 10 spokesperson said the PM was “able to contact people if required”, but did not say how or if he is using a phone.
And this morning, No 10 said the PM "continues to improve" after a "good night" and thanked the NHS for the "brilliant care" he has received.
Foreign Secretary Dominic Raab, has been deputising for the Prime Minister during his treatment.
At the daily Downing Street Covid-19 briefing, Mr Raab said: "I think it's important particularly while he's in intensive care to let him focus on the recovery.
"We in the Government have got this covered.
"I chaired the Cobra meeting that I have just come from, we are pursuing all the different strands of our strategy to defeat the coronavirus and I'm confident we'll get there."
"He's still in intensive care but he continues to make positive steps forward and he's in good spirits."
Mr Raab, asked if he could take major decisions required in Mr Johnson's absence, replied: "I've got all the authority I need to make the relevant decisions - whether it's through chairing Cabinet updates, chairing Cobra, or indeed the morning meetings of senior ministers."
He added it was a "team effort".
Mr Johnson was last seen in public clapping for NHS workers in Downing Street last Thursday before his admission to hospital three days later.
Chancellor Rishi Sunak announced the first big breakthrough in Mr Johnson's health on Thursday, when he said the PM was now "sitting up in bed" and "engaging positively" with medics.
Concerns have been raised over Dominic Cummings, the PM's chief adviser, who has been self-isolating with coronavirus symptoms.
Ten days after Downing Street confirmed his symptoms, the PM's official spokesman was unable to say Mr Cummings is working, instead saying he is "in contact with Number 10".
