"I regret the circumstances that have caused me to be removed from Roseanne. I agreed to the settlement in order that 200 jobs of beloved cast and crew could be saved, and I wish the best for everyone involved," Barr said in a statement released by ABC.
"We are grateful to have reached this agreement to keep our team working as we continue to explore stories of the Conner family," executive producer Tom Werner added.
The new series will be set after the events of last season's reboot season and will run 10 episodes. It will focus on the Conner family adjusting to life after a "sudden turn of events" makes facing the daily challenges of life in Lanford, Illinois more difficult.
ABC stressed that Barr will have no financial stake in the new series, which was a sticking point in negotiations leading up to Thursday's announcement. ABC, Werner's Werner Entertainment and Barr reached a deal where she keeps the rights to the "Roseanne Conner" character and any potential spinoffs outside The Conners.
The new show will bring back John Goodman as Roseanne's husband Dan, Laurie Metcalf as her sister Jackie and Sara Gilbert, Lecy Goranson and Michael Fishman as her children.
"We have received a tremendous amount of support from fans of our show, and it's clear that these characters not only have a place in our hearts, but in the hearts and homes of our audience," the quintet of actors said in a joint statement. "We all came back last season because we wanted to tell stories about the challenges facing a working-class family today. We are so happy to have the opportunity to return with the cast and crew to continue to share those stories through love and laughter."
ABC will air the new show in the same timeslot the previously planned 11th season of Roseanne was supposed to air, Tuesdays at 8 p.m. ET. Despite the questions that arose after the original's cancellation, ABC said the new show will be ready for the fall.
Roseanne was cancelled last month after Barr tweeted a racist comment about Valerie Jarrett, a former aide to President Barack Obama. ABC cancelled the show just hours after the tweet was sent.
"Roseanne's Twitter statement is abhorrent, repugnant, and inconsistent with our values, and we have decided to cancel her show," ABC Entertainment president Channing Dungey said in a statement.
Barr later apologized for the comment and said she "begged" Disney and ABC to reconsider cancelling the show.