Schroeder said Bosnia made progress in cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) and in the implementation of reforms in the country.
The German chancellor told a news conference after talks with Bosnia-Herzegovina Prime Minister Adnan Terzic that he offered assistance to the authorities in Sarajevo in drawing up a modern Constitution of Bosnia-Herzegovina.
Terzic said that Schroeder's visit sent a clear message that Bosnia belonged to Europe.
During his visit to Bosnia, the German official will also hold talks with the international community's High Representative to Bosnia, Paddy Ashdown, and members of the Bosnian Presidency.
After Sarajevo, Schroeder is scheduled to travel to Turkey for an official visit.