Andrew Wylie, who works as Sir Salman’s agent, revealed to US media that the 75-year-old had been taken off the ventilator and was talking.
Mr. Wylie gave no further details about the author’s current condition, AP claimed.
The update came after Mr Wylie indicated that the Indian-born British author was using the fan and could lose an eye after being stabbed in New York.
Mr Rushdie was about to give a lecture at the Chautauqua Institute when he was attacked.
Michael Hill, who is chairman of the Chautauqua Institute, also welcomed the most recent update.
Hill wrote on Twitter: “Salman Rushdie from the ventilator and talking. Constant prayers from everyone at Chautauqua Institution.”
The man accused of stabbing Sir Salman pleaded not guilty on Saturday to charges of attempted murder and assault.
Hadi Matar, 24, who is accused of stabbing Rushdie at least 10 times, has been taken into custody without bail.
Leaders around the world have shared their thoughts with Mr Rushdie’s family following the attack.
Boris Johnson, 58, said: “Shocked that Sir Salman Rushdie has been stabbed while exercising a right we should never cease to defend.
“Right now my thoughts are with his loved ones. We all hope he is okay.”
US President Joe Biden, 79, added: “Jill and I were shocked and saddened to learn of the brutal attack on Salman Rushdie in New York yesterday.
“We pray with all Americans and people around the world for his health and recovery.”
The 46th POTUS added: “Truth. Courage. Resilience. The ability to share ideas without fear.
“These are the building blocks of any free and open society.
“And today we reaffirm our commitment to those deeply American values in solidarity with Rushdie and all those who stand up for freedom of expression.”
Rushdie, who wrote The Satanic Verses, faced death threats from Iran in the 1980s, and religious leaders even ordered a “fatwa.”