The Gers are currently looking for a new manager having parted company with Mark Warburton shortly before their Scottish Cup tie with Morton last week, and Davies has been one of the names that has been widely linked with the role.
And Morgan - who played under Davies at the City Ground - has insisted that the Light Blues would not be looking to close a 27 point gap to their Old Firm rivals at this stage had they had the 52-year-old at the helm all along.
“I’m sure they can improve and, in the key games, someone with Billy’s passion and desire could be vital," he said, as reported by The Scottish Sun.
“That passion he brings to the big games transfers to his players and they go that extra yard for him.
Wes Morgan (L) during his time with Forest
“The points gap is pretty ridiculous at the moment, but if Davies was in charge I don’t think it would be like that.”
Although Davies will understand the expectation at Ibrox having begun his playing career with the club, it would surely be fair for Gers fans to question whether he is actually the right man to take the side forward and close the gap to the Hoops.
Davies has been out of work since leaving Forest for the second time in 2014, and has not worked in Scotland for 16 years having left Motherwell in 2001.
There would therefore be questions about whether Davies would be able to turn things around at Rangers, but Morgan appears to be convinced that his former boss has the right attributes to help the club become a force once again.