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Assauer was raised in Herten, Westphalia. At eight years old in 1952, he joined the Herten gaming association, where he played football until 1964. That year, he entered the professional scene in the Bundesliga when Borussia Dortmund signed him. In 1966 and 1967, he appeared in two matches for the German U-23 national team. During his playing career, he won the European Cup Winners' Cup in 1966. Assauer featured in 121 Bundesliga matches for Borussia Dortmund until 1970, after which he spent six years with Werder Bremen. He retired from professional football in 1976. His career totals include 307 Bundesliga appearances, 12 goals in the league, and eight goals in European competitions.
Following retirement, Assauer stayed deeply involved in football. He immediately assumed the full-time manager role at Werder Bremen. In 1981, he left Bremen and joined FC Schalke 04, where he worked until 1986. He returned to management in 1990 with second-division club VfB Oldenburg. In 1993, he went back to Schalke 04 as a full-time manager. Under his leadership, Schalke won the UEFA Cup in 1997 and secured the German Cup in 2001. The club repeated the German Cup victory the following year. On May 17, 2006, Assauer resigned from all his positions at Schalke 04, following a financial scandal.
The crisis was sparked by a report in Focus magazine revealing the club’s near insolvency. Assauer was in a relationship with Simone Thomalla and had two children. He was one of the Bundesliga’s most well-known and respected figures. Later, he served as an advisor for Wuppertaler SV Borussia. On February 2, 2006, Assauer and Thomalla received the "Golden Camera" television award in the "Best Commercial with Celebrities" category for the Veltins Brewery's "Surprise" advertisement. He was married to Ingrid Aussauer from 1970 until 2007; however, the couple had been separated since 1986. The end of his relationship with Simone Thomalla was made public on January 20, 2009. In April 2011, he married Britta Idrizi. At the end of January 2012, it became public that Assauer was suffering from Alzheimer's disease.
In 2012, he published his autobiography, in which he openly discussed his illness. The biographical documentary "Rudi Assauer - Maker. Human. Legend." premiered on May 4, 2018, directed by Don Schubert at the Veltins Arena.
Rudi Assauer passed away on February 6, 2019, in Herten.