Barnet joint head coach Mark Robson has left his position at the League Two club with immediate effect.
Robson joined the Bees as head coach in the summer but failed to win any of his first 11 games in charge.
Former Dutch international midfielder Davids was brought in during October where he took on a joint role with Robson.
The side's form has picked up in the last two months and consecutive wins over the festive period have taken Barnet outside of the relegation zone.
The Bees released a statement which said: "It was felt that clarification was required regarding the coaching responsibilities at the club and to this end it was agreed that Mark should leave with immediate effect.
"Edgar Davids will continue in his role as head coach and will take full responsibility for all first team footballing matters.
"The club would like to thank Mark for all his efforts and hard work and wish him the very best for the future."