The Daily Record report that Sinclair features prominently on Brendan Rodgers’ wishlist, as he looks to improve his new side’s attacking options.
Celtic have reportedly had four bids rejected by Villa for Sinclair, but the rapid forward is believed to still remain a top target for the Glasgow club.
However, when quizzed on the rumours, Davies kept his cards close to his chest.
He said: “It would be disrespectful of us to talk about players at other clubs.
“We are working hard behind the scenes to try to bring people in who can make a difference.
“It has to be the right deal for the right player.”
Villa are believed to be wanting £5 million in exchange for Sinclair, but Celtic have not made an offer of more than £2.5 million yet.
For a deal to go through a compromise will have to met between the two sides, but Villa are believed to be under no pressure to sell.
Villa have recently been taken over by Dr Tony Xia, who has promised to back the Midlands side with funds.
Celtic have completed two signings so far this summer, with Moussa Dembele and Kolo Toure arriving.