The 38-year-old was part of an Ibrox legends team taking part in a Masters football match in Germany when he was taken ill.
Novo was rushed to hospital from the Max-Schmeling-Halle arena in Berlin and is reported to have undergone emergency heart surgery.
Staff at Novo's NN10 Bar in Glasgow have described the Spaniard as being in "amazing hands" and doing well.
"Great news, Nacho is out of intensive care and looking much better," a status update on the bar's Facebook page read.
"He still has a long way to go and needs lots of rest but is in a stable condition and fingers crossed he will be home soon, hopefully in the next week or so.
"Thank you for all the continuous support and love for Nacho, he's extremely grateful and humbled by the well wishes."
Novo scored 73 goals in 255 games for Rangers between 2004 and 2010, and also had spells in Scotland with Raith Rovers, Dundee and Greenock Morton.