The centre-back is out of contract at Championship club Preston North End and has been moving towards a switch to Scottish champions Celtic.
However, the Bhoys’ swoop for Davies is being hijacked by Liverpool, who are hunting defensive reinforcements.
Liverpool have moved for Davies and it is claimed that the defender’s move to Anfield will go through on Monday before the transfer window closes.
There are not expected to be any hitches and Davies looks set to be playing his football at Liverpool during the second half of the season.
Losing out on Davies will be a blow to Celtic, who had looked strong favourites to secure his signature.
Davies will add to Jurgen Klopp’s defensive options at Anfield, with the German tactician currently without a host of defenders due to injury.
Celtic meanwhile will have to turn to other options amid their own defensive needs, with the Bhoys again found wanting on Saturday when suffering a shock home defeat to St Mirren.
