The 25-year-old has been in Cedars-Sinai hospital in Los Angeles for the past week after suffering a suspected overdose at her Hollywood Hills home.
Reveaing that Demi is nearly ready to leave hospital and transfer straight out to a rehab facility, another source added, "She's getting out any day now".
Demi's family waited to raise the issue of rehab to the Cool For The Summer singer after she suffered complications from her overdose.More news: An ALF Reboot Could Be on the Way
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It's not yet known if Demi will stay local or go to rehab in another state. There was blood on her pillow.an ominous sign because it's evidence of haemorrhaging.
A source told TMZ.com: "The bodyguard somehow knew there was an emergency at Demi's home a week ago and when he entered the home Demi's assistant was screaming: 'She's dead, she's dead!'"
The bodyguard reportedly rushed to Lovato's side and propped her up, as well as attempted to clear her airways so she could breathe. "Some of the information being reported is incorrect and they respectfully ask for privacy and not speculation as her health and recovery is the most important thing right now".
TMZ reports: 'Demi was very sick and her family did not want to upset her with something that might trigger conflict'.