Gascoigne was accused of "racially abusing" fellow customers, groping women and throwing money around.
Gascoigne, 49, was accused of "racially abusing" fellow customers, groping women and throwing money around, witnesses said.
London's Metropolitan Police said officers were called to a disturbance at the Ace Hotel in east London on Tuesday evening and a 49-year-old man was taken to hospital with a head injury.
Gascoigne's spokesman Terry Baker told the Daily Mirror: "He hasn't been arrested. He's about to be released and sent home."
Police said the former Tottenham Hotspur and England midfielder was in a "stable condition" in hospital and inquiries were ongoing.
Witness Alvin Carpio wrote on Twitter that Gascoigne appeared "very drunk" and had been "kicked down the stairs" by someone.
Gascoigne, popularly known as 'Gazza', was fined £1,000 ($1,220, 1,170 euros) in September for making a racist joke about a bodyguard during his one-man show.
Regarded as one of England's most talented players, he won 57 caps for his country, but has battled alcoholism since retiring in 2004.