Real Madrid has shown strong interest in Davies and was rumored to be ready to increase their efforts after securing Kylian Mbappe. They were reportedly prepared to offer €40m (£33.7m) for Davies, considering his contract situation.
However, according to German journalist Florian Plettenberg, Bayern has decided to keep Davies for the upcoming season, letting him enter the final 12 months of his contract. This marks a shift in Bayern's stance, as they now believe Real Madrid is unlikely to make an offer soon and are still hopeful of persuading Davies to sign a new deal.
Davies is reportedly asking for €20m (£16.9m) per year, a figure Bayern is unwilling to meet. Nonetheless, Bayern might revisit the contract negotiations if Davies has a strong 2024-25 season.
Meanwhile, Bayern has strengthened their squad by signing Hiroki Ito from Stuttgart and having Raphael Guerreiro as another option for the left-back position, which means Davies will face stiff competition next season. Initially, it was thought that Bayern would have to sell Davies this summer to avoid losing him for free, but the situation has now changed, and a new contract might be in the cards.
Despite dealing with injuries during the 2023-24 season, Davies still managed three goals and six assists in 42 appearances across all competitions. Real Madrid, benefiting from Ferland Mendy's excellent form, isn't in urgent need of a left-back this summer, so they might wait, knowing Davies could potentially be available on a free transfer next year.
