  For the color-suppressed $\bar{B}^0\longrightarrow D^{0}\pi^{0}$ decay,
nonfactorizable contributions are expected to be leading and naive
factorization description breaks down. We estimate $1/m_b$ power-suppressed
nonfactorizable effect in $\bar{B}^0\longrightarrow D^{0}\pi^{0}$, which is due
to soft exchange between the emitted heavy-light quark pair and $B\pi$ system,
in the framework of QCD light-cone sum rules (LCSR). The resulting correction
to the decay amplitude is found to be numerically comparable with the
corresponding factorizable piece, estimated at about $(50-110)%$ of the latter.
The relevant parameter $a_2$ receives a positive number contribution, due to
the factorizable correction and the power-suppressed soft effect. Our findings
would be crucial to phenomenological understanding of the
$\bar{B}^0\longrightarrow D^{0}\pi^{0}$ decay.
