A method of scheduling transmitting and receiving communication slots for co-located radio devices is provided. A Bluetooth (BT) device first synchronizes its communication time slots with a co-located radio module, and then obtains the traffic pattern of the co-located radio module. Based on the traffic pattern, the BT device selectively skips one or more TX or RX time slots to avoid data transmission or reception in certain time slots and thereby reducing interference with the co-located radio module. In addition, the BT device generates a co-located coexistence (CLC) bitmap and transmits the CLC bitmap to its peer BT device such that the peer BT device can also skip data transmission or reception in certain time slots affected by the co-located radio module. The skipped time slots are disabled for TX or RX operation to prevent interference and to achieve more energy saving.