Barnet said that Davids would become joint Head Coach with incumbent Mark Robson, forming an equal partnership.
In a statement on the club's website, Robson said he was looking forward to working with him:
"I am delighted to welcome Edgar to our club. His experience as a player throughout his illustrious career will be a massive benefit to all our players and I look forward to forming a strong partnership with him".
Robson was put in charge of Barnet back in June, taking over from Martin Allen. But the club has struggled under his leadership. They sit at the foot of the League Two table, with no wins and just three points from their 11 games this season.
More top news
Tributes have been left in Caledonian Road in Islington where 15-year-old Alan Cartwright died after he was stabbed.
A boy has died after he and his friends were attacked while cycling in north London.
Three police officers have been praised for their actions in helping a four-year-old boy who had become stuck on a roof in Newham.