His wife, actress Saira Banu, had earlier said that the 93-year-old was hospitalised because high fever, chest infection and respiratory problems.
"He is much better and is on road to recovery. He will get discharged today at 4 PM," Dr Jalil Parkar, who is attending to him along with other doctors, told a news agency. But there were conflicting reports about the veteran's discharge with some reports suggesting he would be released on Thursday.
The legendary actor, whose real name is Mohammad Yusuf Khan, acted in many superhit films during his six-decade long career such as "Madhumati", "Devdas", "Mughal-e-Azam", "Ganga Jamuna", "Ram Aur Shyam" and "Karma".
He was last seen on-screen in the film "Qila" in 1998. He was honoured with the Dadasaheb Phalke award in 1994 and the Padma Vibhushan in 2015.