Davis, 34, returned to Gers in the January transfer window last season initially on-loan from Southampton before making the switch permanent in the summer on an initial one-year deal.
He’s gone on to add a further year at the club – and he feels he will be a part of an exciting future.
The manager said: “I am delighted to get it all sorted. I think everyone can see I have been enjoying my football and I was keen to extend my stay.
“I know from my first spell, this club really draws you in and it is a great club to be a part of and I feel with the group we have got here, we are moving in the right direction.
“There are probably going to be bumps along the road and we know that, but I do feel we are moving in the right direction.
“It has been a really positive start to the season, but there is a lot of work to do in getting to our goals that we have set.
“We know the demands, and I think as soon as you walk through the door and you experience it, then the lads get to grips with that very soon and know what is expected of them.
“There is a real desire and there is a good blend in the dressing room as well of young players and experienced players. Hopefully that will stand us in good stead.
“We always want to keep trying to improve and there is that desire in the dressing room from the individuals and as a collective as well to keep doing that, and hopefully we can make it a successful season.”
As well as the form of the team, Davis has been pleased with his own play this season, adding: “It has gone really well, and I think it was really important to carry on from where I left off at the back-end of last season, get a good pre-season under my belt and then start from there.
“So I have felt really good, but unfortunately, I have picked up this little injury to miss a couple of important games and there is never a good time, but obviously, with the manner of games we have had with the last two, it has been a real disappointment for me to miss them.
Davis also paid tribute to the club’s supporters for their backing of him right through his time at the club, adding: “The fans have always been excellent with me and hopefully I can repay them with my performances on the pitch and I can’t speak highly enough of them and the backing. they have given me.
“We know how important they are if we want to have success at the club in driving us on, and you need that unity, togetherness and that feel about the place.”