Goody was "shaken" by the incident at her bedside at London's Royal Marsden hospital, where she is spending her final days.
It happened while her husband, Jack Tweed, was taking a break from sitting with her. Goody, 27, screamed out and alerted staff to the woman, who was later arrested by police. The woman was later freed on the advice of lawyers.
Goody's rep, Max Clifford, tells PEOPLE, "She's okay. She has been saying today, 'I am sure she didn't mean any harm.' "
The incident came a day after Goody celebrated a baptism at the hospital with sons Bobby, 5, and Freddy, 4.
A Metropolitan Police spokesman confirms to PEOPLE, "Police were called on Sunday and arrested a woman in possession of an offensive weapon. She was taken into custody at a west London police station. Following the advice of Crown Prosecution Service the 41-year-old woman was release with no further action."
Michael Jackson CallsMeanwhile, Goody's mood was lifted by a surprise call from Michael Jackson, whose brother Jermaine – a costar of Goody's two years ago on Celebrity Big Brother – spoke of her.
Goody missed speaking to Jackson directly because she was asleep at the time of his call, but Jackson, who has just departed the U.K. after announcing his summer comeback concert dates, left her a voicemail. "He called to say I'm thinking of you. Jermaine's told me all about you, and you are all over the media in America'," says Clifford.
"He said he hoped she could come and see the show while he is London. It was lovely. She said to me, 'Who would have thought it?' But I told her you have started to realize, Jade, it's gone all over the world. It was great for her spirits."
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