Baroness Thatcher is due to leave hospital following an operation to remove a growth in her bladder.
The 87-year-old former prime minister was admitted to hospital on December 19 where she underwent "a minimal invasive operation".
Her daughter Carol was with her.
Sky News' Chief Political Correspondent Jon Craig said: "She's returning home today, she’s going to convalesce at home.
"She spent Christmas in hospital after this operation.
"She is 87-years-old and there have often been concerns about her health but this appears to have gone well. She won't be spending the new year in hospital," he added.
A spokesman said she was in "good spirits" following the operation.
The veteran politician's public appearances have been restricted in recent years due to continued ill health.
She was unable to join the Queen for a Diamond Jubilee lunch with former and serving prime ministers this summer and missed an 85th birthday party thrown for her at 10 Downing Street.
Baroness Thatcher was the first female prime minister - between 1979 and 1990 - and first female leader of the Conservative Party.