The 37-year-old will still be registered as a player at United, but is unlikely to force his way into the first-team picture.
He will concentrate instead on his role as first-team coach, taking a step back from the joint assistant role he had filled alongside Andy Crosby since November 2006.
Baraclough has been at Glanford Park since June 2004, when he joined on a free transfer from Notts County.