One of her doctors, Mumtaz Khan, told AFP Malala had improved since the bullet was removed in an operation on Wednesday but she was still seriously ill.
"She has been put on a ventilator for two days. The bullet has affected some part of the brain, but there is a 70% chance that she will survive," he said.
Asked whether 14-year-old Malala was being sent to the top military hospital in Rawalpindi, a military official confirmed to AFP only that she was being moved and that a further announcement would be made shortly.
"Her condition is not yet out of danger despite improvement. She is being shifted to Rawalpindi," Governor Kyber-Pakhtunkhwa Masood Kausar told reporters.
Malala, who studies at Khushal Public School, was on her way home when the vehicle came under attack on Haji Baba Road. One of the other injured has been identified as Shazia and sources say the third was a teacher.
Taliban spokesman Ehsanullah Ehsan had said his group was behind the shooting.
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