The midfielder has made 25 appearances in the Championship for Gary Rowett's men this season.
The 25-year-old was out of contract with the Championship club in the summer (via Mail), however it appears that he has done enough to convince Gary Rowett that he can be an important member of the squad as they look to build on their promising season so far.
Despite making 25 appearances in the league this term, it may have seemed that Davis could have been on his way out this summer as the blossoming partnership between Stephen Gleeson and Maikel Kieftenbeld in centre-midfield meant that only 14 of those 25 appearances saw Davis actually start.
However, he proved when he made his first start since January in the Blues' most recent game with Wolves on Sunday that he could be a big asset as they try to keep themselves in the race for a play-off spot.
Davis was arguably the Midlands side's best player during the goalless draw at Molineux, and almost proved to be the match-winner as his excellent work on the edge of the box saw him go through on goal. However, Carl Ikeme produced a fine save to ensure that the points were shared.
And with Birmingham now four points adrift of the top six, Rowett will be hoping that Davis can continue to put in similar displays from now until the end of the season.