Lupe De Leon said the 73-year-old singer was taken to her home in Riverside, California, east of Los Angeles, and is there with her husband and doctor.
"We all think it's best for her to be at home," said De Leon.
"At Last" singer James was admitted to the hospital last month because she was struggling to breathe. She has been in failing health for several years and suffers from leukemia, kidney disease and dementia.
Her doctor has said James was considered terminally ill, and she communicates mostly with nods and simple words. The three-time Grammy Award singer had also battled obesity and was addicted to heroin for many years.
James was a key figure in the early days of R&B music with hit songs like "The Wallflower" and "Good Rockin' Daddy". But it was her 1961 recording of the ballad "At Last" that put her on the map. She currently has a CD out called "The Dreamer."
