The former Bees player has been in charge since John Still stepped away in December.
He helped inspire the team to a shock FA Cup third round win at Premier League chasing Sheffield United.
Now ahead of Monday’s live clash with Championship Brentford, Barnet have confirmed he is staying in charge.
"This is an incredibly proud moment for myself and a great opportunity to take my first steps in management at a club I loved playing for,” he told the club’s website.
"I have thoroughly enjoyed my first three weeks in charge and I'm relishing the chance to take this great club forward.
"It's an exciting new chapter for me and I hope to keep the smiles on the faces of our brilliant supporters."
Barnet chairman Tony Kleanthous added: “Darren has created a real buzz around the place that’s been missing for quite a while now.
"He has made a good start to his new career and we all wish him the very best for his future.”