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
A police officer who spent six days crawling the London Marathon in a gorilla costume has finally completed the 26-mile route.
The victim of a "violent and sustained attack" on the top deck of a London bus has been named as Archie Sheppard.
Transport for London has made the badges and accompanying cards permanently available after a successful trial in autumn last year.