The self-labelled "upmarket" celebrity glossy has seen its circulation rise to 842,723, compared with OK!'s 651,513, a rise of 43.1% year on year.
The bitter battle stepped up a gear last year when OK!-owner Richard Desmond bought Express Newspapers and began heavy promotion of the two titles, including offering an OK! supplement free with the Daily Express.
Hello! responded by teaming up with the Daily Mail and Mail on Sunday, while appointing new editor-in-chief Phil Hall, a former editor of the News of the World.
Hello!'s success lies in the £3m it spent on a sampling campaign, which involved special editions, and coupons for free magazines with the Daily Mail and the Mail on Sunday. It also signed a deal with Virgin to distribute the magazines to passengers on Virgin Atlantic flights.
Elsewhere in the sector, Emap's celebrity weekly Heat, which targets the younger end of the market, saw sales rise a huge 147.5% year-on-year to 235,450.
IPC's Now increased its circulation by 21.9% year on year to 518,322, but the rest of the weeklies results make less spectacular reading by comparison.
The loser in the sector is H Bauer's Bella, which lost 12.4% year on year and 9% on last period with a circulation of 484,986.