German Foreign Minister Frank-Walter Stein Meier has also extended support for the "mission", reported German news site RP Online.
Schroeder's trip was approved by the German foreign ministry follow consultations with the new US administration, Islamic republic news agency reported, citing German mass media.
Meantime press tv reported that the government of German Chancellor Angela Merkel has assigned the country's ex-leader to the task of talking to Iran.
Although the exact topic of discussions has not yet been made public, the Saturday edition of the Hannoversche Allgemeine Zeitung reads that Iran's nuclear program will be the dominant topic on the agenda.
The exact date of the visit has not yet been announced yet.
Obama, who was inaugurated as the 44th president of the United States last Tuesday, earlier said Iran would be a priority in US foreign policy and that Washington needed to engage with Iran.
Germany together with Russia, China, France, England and Unites State are among world's powers in dealing with Iranian nuclear issue.
The United States and its Western allies accuse Iran of trying to develop nuclear weapons under the cover of a civilian nuclear program, while they have never presented any corroborative document to substantiate their allegations. Iran denies the charges and insists that its nuclear program is for peaceful purposes only.
Tehran stresses that the country has always pursued a civilian path to provide power to the growing number of Iranian population, whose fossil fuel would eventually run dry.
Iran is under three rounds of UN Security Council sanctions for turning down West's calls to give up its right of uranium enrichment, saying the demand is politically tainted and illogical.
Iran has so far ruled out halting or limiting its nuclear work in exchange for trade and other incentives, saying that renouncing its rights under the NPT would encourage world powers to put further pressure on the country and would not lead to a change in the West's hardline stance on Tehran.
Iran has also insisted that it would continue enriching uranium because it needs to provide fuel to a 300-megawatt light-water reactor it is building in the southwestern town of Darkhoveyn as well as its first nuclear power plant in the southern port city of Bushehr.
The Islamic Republic says that it considers its nuclear case closed as it has come clean of IAEA's questions and suspicions about its past nuclear activities.