The director lost his battle with the disease on Monday (12Apr10) at a hospital in Kassel, Germany. He was 65.
Schroeter began his film career in the 1960s and became known for his work with gay moviemaker Rosa von Praunheim.
He used his projects to challenge common perceptions of outsiders, such as homosexuals and immigrants, and established himself as a leading voice in the German film industry in the 1970s.
He was most recently honoured for his work at the Berlin Film Festival, where he was awarded an honorary Teddy Award for cinema with gay themes.