The filmmaker died at his home near Barcelona, reported Variety.
The news was broken by a representative for Spain's Academy for Cinematography Arts and Sciences, who wrote on the organisation's Twitter page: "The Academy is sorry about the passing away of Bigas Luna. The 67-year-old film director was working on his next film."
Bigas Luna made his debut as a screenwriter and director in 1976 film 'Tatuaje' and became known for making erotically-charged movies like 'Bilbao' (1978).
He gave a young Penelope Cruz her big break in 1992 when he cast her opposite her now-husband Javier Bardem in her movie debut, 'Jamon Jamon', a critically-acclaimed comedy drama which landed him the prestigious Silver Lion award at the Venice Film Festival in Italy.