Coolmore Stud report St Nicholas Abbey to have had his "best week" since his first operation in July.
Aidan O'Brien's six-times Group One winner had to be retired after fracturing a pastern on the gallops at Ballydoyle.
A few days after surgery, the six-year-old contracted colic, and he had a further setback last week when it was discovered a steel weight-bearing pin in a cannon bone had broken.
An update on www.coolmore.com read: "While still having a guarded prognosis, St Nicholas Abbey has had his best week since his initial surgery.
"Since the pin removal his weight bearing on the injured leg has improved gradually and he is walking as well as can be expected with a cast.
"St Nicholas Abbey seems more content, lying down several times a night to rest and his appetite is excellent so he is starting to thrive.
"His temperature has stabilised and blood work has normalised.
"Surgeons Dr Kelly & Dr O'Brien are more upbeat on his prognosis however there are many weeks to go before St Nicholas Abbey is out of danger."