The 27-year-old New Zealander sustained a serious neck injury in the Premiership defeat to Saracens at Allianz Park on January 4.
Fatialofa underwent surgery to relieve the pressure on his spinal cord caused by bruising and swelling.
Worcester revealed on Thursday that the former Hurricanes forward has been moved from intensive care to the Major Trauma Unit at St Mary's Hospital in London.
A club statement said: "Michael's condition remains serious but he is making good progress and he is showing encouraging signs of improvement.
"The hope is that he will soon be transferred to the internationally acclaimed spinal injuries unit at Stoke Mandeville Hospital in Buckinghamshire to continue his rehabilitation."
The Warriors have set up a special email account – firstname.lastname@example.org – so that Michael and his wife, Tatiana, can receive messages of support.