The former Everton academy graduate left the Toffees at the end of his contract this summer and has been looking for a new club.
Several clubs in the Premier League have been interested in a player who has made 179 senior appearances.
The midfielder has been in talks to join newly promoted Premier League side Sheffield United in the ongoing summer transfer window.
And it has been claimed that the Blades are set to sign the midfielder on a free transfer this week.
The talks have been going according to plan and Davies will undergo a medical with the Yorkshire outfit soon.
Once all the formalities are completed, the 25-year-old midfielder will sign a contract with Sheffield United.
The Blades are looking to bring in a plethora of new signings before the end of the window and Davies is set to be one of them.
Sheffield United’s return to the Premier League got off to a rocky start when they lost 1-0 at home to Crystal Palace last weekend.
