The Queen reportedly returned to London for first time since October after leaving Windsor where she has spent much of the last year.
The 95-year-old monarch reportedly returned to the capital for a visit last week - believed to be her first return since spending a night in hospital in October.
And Her Majesty was said to have been back on her feet as she was reportedly spotted walking without a walking stick.
One onlooker told the Sun : "Everyone has been worried sick for the Queen after she went to hospital.
"So it was great she was out and about and on her feet and looking back to her best. Hopefully, being on her feet in London is a sign that we will see her back on engagements soon.
"This is such a boost ahead of Christmas when everyone is so down in the dumps right now."
The Queen has been on light duties since her hospital stay in late October when Buckingham Palace announced the monarch underwent “preliminary investigations” after cancelling a planned trip to Northern Ireland.
She has cancelled her pre-Christmas party on Tuesday due to spiralling Covid rates throughout the country.
The monarch was weighing up whether to hold her traditional family get together next week but she has decided to shelve plans with coronavirus cases worse than ever.
Her Majesty's decision comes with Prime Minister Boris Johnson and Chief Medical Officer Chris Whitty at odds over whether to cut back on socialising in the run-up to Christmas Day
A senior palace source said: “The pre-Christmas family lunch will not be going ahead.
“The decision is a precautionary one as it is felt to put too many people’s Christmas arrangements at risk if it went ahead.
“While there is regret that it is cancelled, there is a belief it is the right thing to do for all concerned.”
The Queen however will not spend Christmas alone after senior royals agreed to reduce all but essential contacts beforehand, amid a surge in Covid infections.
Prince Charles and Camilla, Prince William and Kate, Princess Anne, Prince Edward and his wife Sophie have cancelled any pre-Christmas plans to ensure they can be with her.
The monarch was today forced to abandon a party for her extended family due to the pandemic.
Her Majesty was planning to welcome around 50 relatives to Windsor Castle on Tuesday, but took the decision to abort the do.
It comes as the rest of the country was warned further restrictions may be needed if vaccines are less effective than expected against Omicron, England’s chief medical officer said.
Prof Chris Whitty warned that new data expected after Christmas could lead to a “material change” in the Government’s approach.
“If it looked as if the vaccines were less effective than we were expecting,” he said. Boris Johnson faced anger from Tory MPs and business chiefs about Prof Whitty’s warning to reduce socialising in the run-up to Christmas.
The PM rejected claims he was imposing a “lockdown by stealth” but urged people to be “cautious” about their activities over the festive season.