The defender has been told he will now not be banned after being dismissed for deliberate handball on Saturday, following an apology by referee Wolfgang Stark
The encounter saw the 24-year-old shown a red card for deliberate handball inside the penalty area during the first-half, resulting in a penalty to the visitors which Diego fired home to make it 1-1.
But after the game, referee Wolfgang Stark admitted that he had made the wrong decision and issued an apology to BVB, with the DFB opting to rescind Schmelzer's red card on Monday.
"Normally, the sending off of a player leads to a ban of at least one match, since Fifa generally protects the decisions of referees," a DFB statement explained.
"The only exception is if the sending off is obviously and undoubtedly based on an error by the referee."
Jurgen Klopp had praised the way his player took the booking, even joking that "he should have been nominated for the Nobel Peace prize", as a result of his exemplary temperament.
Former Germany international Lothar Matthaus also gave his take on the incident and suggested officials should face punisment for making mistakes.
"Like players who have a poor run of form, [referees] should also be rested."