The Pope's "clinical condition has shown a further, small improvement over the past 24 hours", it is stated.
The Pope is still receiving oxygen and performing breathing exercises.
The 88-year-old Pope was admitted to Gemelli Hospital in Rome on February 14 with breathing difficulties, and his condition subsequently deteriorated.
A CT scan performed on Tuesday and blood tests on Wednesday confirmed the improvement in his lungs. According to the Vatican, the mild kidney failure detected over the weekend has also "disappeared".
According to an earlier statement on Wednesday from the Vatican, the Pope, despite his critical condition, has been following church matters from his hospital bed.
"In the morning, after receiving communion, he resumed his work activities", the statement reads.
Doctors have stated that the outcome of his health condition is highly uncertain due to his age, frailty, and a pre-existing lung disease.
