The 39-year-old former Juventus and Ajax midfielder is set to help out his local football club, who sit bottom of League Two and are winless in all competitions so far this season
The 39-year-old, who retired from football two years ago, will share the role with Mark Robson - who has been in charge since the start of the season.
Barnet stated on their official Twitter account: "Dutch legend, former Barcelona, Juventus, Ajax & Milan midfielder Edgar Davids joins Barnet & becomes joint Head Coach with Mark Robson."
Davids himself later revealed he could come out of retirement and play when needed.
He tweeted: "Happy to say I will join my local football club Barnet fc as a player/coach."
Davids has no previous coaching experience, but joins a Barnet side in desperate need for a boost as they sit bottom of League Two and are yet to win a match in any competition this season.
Since his retirement, the former Inter and Tottenham midfielder has been working at boardroom level in Ajax, club where he won the Champions League in 1995.
He could be in the Underhill dugout for Saturday's visit of Plymouth.