Despite his advancing years, the 36-year-old midfielder has played a massive role in Rangers winning their first Scottish Premiership title after a decade.
Rangers made sure the veteran midfielder stayed at the club for one more season when he signed a one-year extension earlier this year.
Ferguson is a big fan of Davis and insisted that the midfielder is only getting better despite being 36.
He feels Rangers did smart business by keeping him for one more year and he will have a major role to play for the club next season.
The former Rangers star stressed that Davis brings a sense of calm to the Gers side with his ability and experience.
Ferguson said on The Go Radio Football Show: “He is the perfect footballer and he is getting better with age like fine red wine.
“Watching that game on Sunday, I think it was [Connor] Goldson who lost the ball and at his age the desire [he showed] to get back there and get a tackle in.
“And a brilliant piece of business from Rangers in keeping him.
“Is he going to be available to play every game next season? You just need to wait and see for pre-season and how everything goes.
“But for me, he has been absolutely immense and in that Rangers team, he brings calmness.”
Despite being 36 years of age, Davis has still made 47 appearances for Rangers across all competitions this season.