Another friend, radio host Alan Jones, said: "Yes, it's serious ... Ian is a beautiful person, but he has difficulty recognising his problems."
In his autobiography, the five-times Olympic gold medallist wrote: "Not even my family is aware that I've spent a lot of my life battling what I can only describe as crippling depression ... I used alcohol as a means to rid my head of terrible thoughts, as a way of managing my moods."
After quitting swimming, Thorpe moved to Los Angeles for a while, where he was frequently photographed with other celebrities. He dabbled in jewellery design, and was involved in several failed business ventures. During the London Olympics, he was a TV commentator for the BBC, to whom he remains under contract.
In Australia he had been socialising at events such as the Australian Open in Melbourne and the Sydney wedding of his model friend Tahyna Tozzi. Thorpe reportedly appeared cheerful, but complained of pain from an old back injury.
The hospital where he is said to have been treated for depression and alcohol abuse refused to confirm that he had been admitted.
Former champion swimmer Kieren Perkins, told Fairfax Media yesterday that he was not surprised to hear about his troubles. "I think it happens [to elite athletes] far more than we know, it's just that Ian is famous and getting attention," he said.