The Canada international endured a difficult previous campaign because of injury, but has returned to fitness and resumed his place on the left side of Bayern's defence. His position is now attracting attention following the arrival of Nathaniel Brown, who provides further competition in the role.
According to reporting by Bild journalist Christian Falk, Davies is not considered untouchable. Bayern Munich would be willing to discuss a transfer if a major offer were made, although there is no indication that the club is actively trying to force him out.
That distinction is important. Davies remains under contract until 2030, and Bayern have invested heavily in retaining a player whose pace and versatility have made him a significant part of the side for several seasons.
However, the financial implications of his contract could influence the club's thinking. Davies earns a substantial salary, and a lucrative offer could give Bayern an opportunity to reshape their squad while reducing their wage commitments.
Brown's arrival has added another consideration. The Germany international joined from Eintracht Frankfurt in the summer and is capable of competing at left-back, giving Kompany another option in a position that had previously been closely associated with Davies.
Bayern's recruitment does not automatically mean the Canadian is set to lose his place. Davies has returned from his injury problems and is again available to contribute, while the club would need to weigh any potential fee against the value of retaining an experienced defender.
There is also the question of the player's own wishes. Any transfer would require Davies to agree to a move, and leaving Bayern during the middle of the season may be an unattractive prospect for a player who has worked to regain his fitness and standing.
The possibility of a sale was discussed during the previous summer, but no suitable offer materialised. If Davies continues to perform well, Bayern could find themselves in a stronger negotiating position should another club make a serious approach.
For now, the situation remains one to monitor rather than an imminent departure. Bayern are open to considering a substantial proposal, but Davies has not been publicly placed on the transfer list and remains part of Kompany's options.