The footballing legend, 49, was “causing trouble” at the Ace Hotel in the east of the capital on Tuesday evening.
Gascoigne’s spokesman, Terry Baker, confirmed he had been hospitalised with a head wound.
One witness suggested he had been antagonising other guests.
Gascoigne has battled with alcoholism for a number of years and in September pleaded guilty to a racially aggravated public order offence after he told a racist joke during An Evening With Gazza show in Wolverhampton.
A police spokesman said: “Police were called at 18:05hrs on Tuesday, 27 December to reports of a disturbance at a hotel on Shoreditch High Street, E1.
“Officers were called a short time later to reports of a man assaulted at the same location.
“Officers and the London Ambulance Service attended. A 49-year-old man was found suffering from a head injury.
“The man has been taken to an east London hospital where he remains in a stable condition.
“There have been no arrests and enquiries continue.”
Last year Gascoigne opened up about the psychosis caused by substance abuse in an interview with Alastair Campbell for GQ magazine.
He said: “The worst was the psychosis through cocaine, ten years ago, when my sister got me sectioned. The paranoia was unbelievable.
“I was frightened to touch food. I was up in Gateshead with my dad and I’m going, ‘Dad, that bloke’s f***ing looking at me,’ and he says, ‘You’re Paul f***ing Gascoigne, course he’s f***ing looking at you.’
“I get home, I get to bed, and I’ve got a couple of packets of wine gums and I wake my dad up and I say, ‘The wine gums are f***ing looking at me,’ and he says, ‘Eat the bastards and get to bed,’ so I eat them and then I find another packet and I get him up again and I say, ‘Dad, there’s another packet f***ing looking at me,’ and he went, ‘For f*** sake, eat the bastards and get to sleep.”
The footballer played for Newcastle United, Tottenham Hotspur, Everton and Middlesbrough as well as making 57 appearances for England between 1988 and 1998.
He retired in 2005.