The 25-year-old pop star's family has released a statement to Entertainment Tonight confirming that she is awake.
"Demi is awake and with her family who want to express thanks to everyone for the love, prayers and support. 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," it reads.
In wake of the news, a source has spoken to E! News, revealing that Lovato's recent relapse began a few months ago, around the same time as the release of her song 'Sober.'
"She had a sober coach who she cut out of her life a few months ago. She's been in a downward spiral ever since and has not been doing well," they said.
"She's been heavily using and her friends have been very worried that this was going to happen."
Another source has also come forward and shared that close friends and family urged the former Disney actress to seek further help and treatment, however she insisted she could "handle it on her own".
"Demi has been trying to stay busy with her tour but she has definitely been having her ups and downs. She has distanced herself from many important people in her life and even let go of a few people on her team," they said.
"Everyone has been urging her to get help with her life coach, and to seek treatment again. Demi recently has wanted to be more social and out in about, and has been privately partying more with friends."
In March, Demi opened up about her addiction journey with an emotional speech mid-concert as she celebrated her sober milestone of six years.
"The reason why I became so open about my story is because I know that there are people here tonight that need to ask for help and I want them to know that it's OK," she said at the time, E! News reports.
"Mental health is something that we all need to talk about and we need to take the stigma away from it. So let's raise the awareness. Let's let everybody know it's OK to have a mental illness and addiction problem. I'm bipolar, whatever. I take care of myself."
"I can never say thank you enough to you guys for the support that you've given me over the years," she continued. "And you've forgiven me for my mistakes. So thank you for being a part of saving my life. I love you guys."
If you or someone you know needs help, contact Lifeline on 13 11 14 or visit Lifeline.