A droplet can deform a soft substrate due to capillary forces when they are in contact. We study the static deformation of a soft solid layer coated on a rigid cylindrical fiber when an axisymmetric barrel-shaped droplet is embracing it. We found that elastic deformation increases with a decreasing rigid fiber radius. Significant disparities of deformation between the solid-liquid side and the solid-gas side are found when their solid surface tensions are different. When the coated layer is soft enough and the rigid fiber radius is less than the thickness of the coated layer, pronounced displacement oscillations are observed. Such slow decay of deformation with distances from the contact line position suggests a possible long-range interaction between droplets on a soft-layer-coated fiber.