"The Wedding Singer" star, who passed away at the age of 47 on Sunday, had been suffering from the severe disease, reported People magazine.
"At one point, she wasn't able to leave the house. She was in bad shape.
"The whole family rallied around her. In the end they were always there to support her. Everyone knew (her death) was imminent. It was a matter of time," a source said.
Arquette died surrounded by family, her siblings Patricia, David, Rosanna and Richmond confirmed.
Her brother Richmond also announced her death, in a Facebook post, saying she died while listening to David Bowie's "Starman".