She is expected to undergo cranial reconstruction surgery in late January or early February as part of her long-term recovery.
When Malala was shot the bullet entered just above her left eye and ran along her jaw, “grazing” her brain – it was later removed by surgeons in Pakistan.
Dave Rosser, medical director at University Hospitals Birmingham NHS Foundation Trust, said: “Malala is a strong young woman and has worked hard with the people caring for her to make excellent progress in her recovery.
“Following discussions with Malala and her medical team, we decided that she would benefit from being at home with her parents and two brothers.
“She will return to the hospital as an outpatient and our therapies team will continue to work with her at home to supervise her onward care.”
Malala is now likely to secure permanent residence in the UK after her father was granted a job with the Pakistani consulate in Birmingham.
Ziauddin Yousafzai has been appointed education attache for three years, with the option of an extension for a further two years afterwards.
She was pictured in November sitting up in her bed reading cards and messages from supporters.
At the time her father issued a statement saying: “She wants me to tell everyone how grateful she is and is amazed that men, women and children from across the world are interested in her well-being.
“We deeply feel the heart-touching good wishes of the people across the world of all castes, colour and creed.
“I am awfully thankful to all the peace-loving well-wishers who strongly condemn the assassination attempt on Malala, who pray for her health and support the grand cause of peace, education, freedom of thought and freedom of expression.”
He described the decision to fly his daughter to hospital in Britain as a “miracle” and vowed that she would “rise again”.