The 37-year-old has become part of Derek McInnes' backroom staff and he can't wait for the next chapter of his career to get underway.
"I wanted to stay in football and, although there were a few possibilities on the go, to remain here at Pittodrie was a no-brainer.
"These are exciting times for Aberdeen and I'm just delighted that I can continue to be a part of that.
"Ultimately, I would like to manage one day and this is a great way to learn the ropes from the current management team as well as hopefully being able to pass on some of the things I've learned as a player to the younger lads here."
In a career spanning more than two decades, Barry was a youngster with Rangers before joining Inverness Caley Thistle, where he spent some time on loan at Forfar Athletic.
His subsequent career saw him play for Dundee United, Celtic, Middlesbrough, Vancouver Whitecaps and Sheffield United before becoming one of Derek McInnes' first signings at Pittodrie three years ago.
The midfielder also picked up 17 caps for the national side.