The 38-year-old was featuring for Rangers in the AOK Traditionsmasters 2018 in Berlin, and was taken ill after they had been knocked out of the round-robin tournament.
It is understood he was rushed to hospital from the Max-Schmeling-Halle arena before undergoing emergency surgery.
Staff at his NN10 bar in Glasgow said the footballer is in “amazing hands” in Germany and is doing well.
A post on the bar’s Facebook page said: “Great news Nacho is out of intensive care and looking much better 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.”
On Saturday morning Novo, who last played for Northern Irish side Glentoran, posted a picture on Instagram of him sharing a pre-match coffee with team-mate Michael Mols, with Gordon Durie, Alex Rae, Andy Goram and Jorg Albertz also playing for Rangers.
The picture has been “liked” more than 6,000 times, with many people writing get well soon messages.
Glentoran, who released Novo in May, tweeted: ‘’Speedy recovery Nacho.’’