Luther kept the deuterocanon, yes. He did however print them under the heading: “apocrypha- these are not held equal to the scriptures but are useful and good to read,” so he indicated clearly his view that they have a secondary, inferior status. He largely let colleagues translate them, whereas he did most of the translation of the rest of books (”the scriptures”). He also collected four of his ( then) least favorite “ scripture” books together at the end (moving Hebrews and James to dwell at the rear with Jude and Revelation). He translated direct from the Hebrew and Greek and while his was not the first translation into his vernacular German it was the most influential.
The newer Bibles now have them put back in.