The 84-year-old is said to have had a stroke, and was moved from prison to life support in an army hospital.
Supporters and opponents gathered outside the hospital through the night, after initial reports said he was "clinically dead".
Mubarak was removed in last year's uprising, and jailed for life for his role in the death of protesters.
There have been frequent reports since then that his health has deteriorated, many of which have proved wrong.
The news comes as tens of thousands of people protest in Cairo's Tahrir Square against a move by the ruling military council to assume new powers.
The rally was called by the Muslim Brotherhood, which is also claiming victory for its candidate Mohammed Mursi in last weekend's presidential elections.
His rival Ahmed Shafiq, a former prime minister under Mubarak, has also said he has won.Results are expected to be announced on Thursday
The Muslim Brotherhood has also vowed to retry Mubarak once in power, and insists that he should face the death penalty.
As Egyptians voted, the generals dissolved parliament and claimed all legislative power for themselves.
Activists have described the moves as a "military coup"
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