The Australian, 55, was knocked off his bike after a car collided with him in south Manchester, causing bleeding on the brain.
He was taken to Salford Royal, which specialises in head trauma, and he remained under observation there until Saturday.
The Team Sky coach is now hoping to attend the track World Cup meeting in Glasgow on Saturday.
A British Cycling Association spokeswoman said: “Shane is doing well. He was released from hospital on Saturday and is resting and recuperating at home. He is hoping to be in Glasgow for the World Cup on Saturday.”
Sutton's accident came just a day after Olympic gold medallist and Tour de France winner Bradley Wiggins was knocked off his bike near his home in Wigan.
Wiggins, who suffered bruising to his hands and ribs, was released from hospital the next day.