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Earlier she underwent treatment at the jail hospital but later taken to the Bowring Hospital for a second opinion, sources added.
The expelled AIADMK leader arrived in an ambulance and was taken inside the hospital in a wheelchair, the sources said.
Earlier, a jail official said she was getting treated for fever and breathlessness in the jail hospital.
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It is not confirmed yet whether she is suffering from COVID-19.
Sasikala, lodged at the Parappana Agrahara Prison here, was sentenced to four years imprisonment in February 2017 in the Rs 66 crore disproportionate assets case.
Her illness comes at a time when she is just a week away to walk free from the prison on January 27.