UPDATE 1-Luxembourg's Bettel in serious condition in hospital with COVID

(Adds government statement)

July 5 (Reuters) - Luxembourg's Prime Minister Xavier Bettel is in a serious but stable condition after contracting COVID-19 and will remain in hospital for the time being, the government said on Monday.

When Bettel was admitted to hospital on Sunday due to persistent symptoms, an insufficient oxygen saturation was diagnosed, according to a statement by the state ministry.

"The prime minister's current medical condition is considered serious, but stable," the ministry said.

"Therefore, the medical staff treating the prime minister has decided that hospitalisation is still necessary at this time for an estimated period of 2-4 days to continue observation."

Bettel would continue to coordinate the government's work and fulfil his duties from a distance, the statement added.

Bettel, 48, tested positive shortly after a two-day EU summit in Brussels at the end of June, where participants included French President Emmanuel Macron, German Chancellor Angela Merkel, Italian Prime Minister Mario Draghi and other European leaders. (Reporting by Sabine Siebold; Editing by Alex Richardson, Kate Abnett and Giles Elgood)