Cops had to be called to his Algarve hotel at 6.30 a.m. as tourists found him struggling to speak and unable to focus.
One onlooker told The Sun: "He has ripped himself to shreds, psychologically. It was the most distressing thing I have ever seen. He was such a legend but then to find him babbling incoherently like this was awful."
The ex-England star boozed with Corrie star Bradley Walsh while on holiday with pals including Jimmy 'Five Bellies' Gardner.
Tourists told how he downed 20 double whiskies in a day, fought with barmen over booze bills and argued with Jimmy over a 20,000 pound debt.
Gazza, who went into rehab in May after a suicide bid, arrived at Portuguese resort Vale do Lobo last week.
He began drinking last Thursday and was seen at bars until early yesterday.
He was then found alone and confused in the lobby of his five-star hotel, telling one tourist that Jimmy flew home after their row.