Former Middlesbrough defender Davies can play either as full-back or centre-half and would be a welcome addition to a back line which was breached too easily on Saturday. With the signing of Newcastle's Abdoulaye Faye for £2.25m, subject to work permit, the signing of Davies would certainly give Tony Pulis more defensive options.
Davies is still a couple of weeks away from fitness after missing most of the season with injury, but at 23 he is the type of young player who Stoke are looking to build a team around.
Stoke are also looking at bringing in a striker and a left winger to complete the squad building before the end of August.