Blackburn are in the market for midfield reinforcements and are ready to switch their attentions to Davis after seeing a move for Aston Villa's Barry Bannan fall through.
Davis broke into the Wolves side at the back end of their final season in the Premier League and has caught the eye at Molineux.
The 22-year-old, who has come through the youth ranks at Wolves, is highly-regarded within the corridors of power at the West Midlands club.
Davis made 32 appearances in all competitions for Wolves last season before an ankle injury forced him to miss the final month of last term.
Blackburn are believed to have held a long-term interest in the all-action midfielder and are weighing up a move for Davis as they look to bolster their squad before the close of the transfer window.