Motivated by the experimental measurements of $D^0$ radiative decay modes we have proposed a model to study the $D^0to bar{K}^{*0}gamma$ decay, by establishing a link with $D^0to bar{K}^{*0}V$ $(V=rho^0,, omega)$ decays through the vector meson dominance hypothesis. In order to do this properly, we have used the Lagrangians from the local hidden gauge symmetry approach to account for $Vgamma$ conversion. As a result, we have found the branching ratio $mathcal{B}[D^0to bar{K}^{*0}gamma] =(1.55 - 3.44)times 10^{-4}$, which is in fair agreement with the experimental values reported by Belle and Babar collaborations.