The Poison frontman passed muster with host Donald Trump on Sunday's edition and he'll be back for next week's live conclusion. Michaels will square off against actress Holly Robinson Peete to settle who wins the NBC reality competition.
Fired Sunday were wrestler-model Maria Kanellis, Australian chef Curtis Stone, and rock-star wife and TV personality Sharon Osbourne.
"I came in here as a complete underdog," Michaels crowed after hearing the good news in Trump's boardroom. "You know what everyone's mistake was? They so underestimated me!"
Michaels' presence in the series, which through Sunday's episode had been taped months ago, stoked viewer interest after he suffered a brain hemorrhage in April that left him in intensive care. He has since been released from a Phoenix hospital. His doctor has said he is expected to make a full recovery.
The current season of "Celebrity Apprentice" began in March with 14 contestants, each competing in business-oriented tasks around Manhattan to raise money for (and publicize) their favorite charities.
Michaels, who as a child was diagnosed with Type 1 diabetes, chose the American Diabetes Association. Robinson Peete's charity is her HollyRod Foundation, whose mission is to support families who have a loved one with a serious medical condition. She has a son diagnosed as autistic.
