Allardyce is of the opinion that the 27-year old is playing the best football of his career to date and has urged the forward to think about staying at Bolton for the long term.
Davies is currently under contract until next summer and his early season performances as well as an impressive season last year are sure to be attracting interest around the country but the Bolton boss has urged the born again Yorkshireman to stay put with the Trotters.
"He shouldn't consider going anywhere else, This is the only place for him to play." Allardyce said
"We know how to get the best out of him and I think he knows that. What we do suits him down to the ground and I think he needs to forge a career with us. He should stay here and be content. He can be a big fans' favourite, hopefully for a while longer.
"The way he plays, he shouldn't think of going anywhere else. The grass is not always greener on the other side. He's experienced that big move scenario and he should stay here and be content with the club he's playing for, the players he's playing with and the manager who is managing him."
Allardyce was quick to stress to the supporters and media that other clubs had not been in touch merely stating that his comments where voiced to try and motivate the player even further, and the gaffer believes there is much more to come from the former Southampton man.
"There's no motive for saying what I've said,He surprised us all last year and we just think he should continue his improvement with us. We think he can improve even more under us and be a bit of a hero for the fans here."