The 35-year-old was part of the Bolton side that was relegated on the final weekend of the season, but he has insisted that he is relishing the challenge of the new season.
"We've had both ends of the spectrum. My first four or five years here were great - cup finals, qualifying for Europe and things like that. Then things turned around and we had two or three years fighting relegation. So there has always been a battle and something to play for while I've been in this side," he told reporters.
"I enjoyed the battle of trying to keep the team in the league as much as I did trying to finish in sixth or seventh spot when we were trying to qualify for Europe. Obviously this season we've got another battle on our hands trying to get back to where we want to be and it's another one that I'm personally looking forward to."
Davies scored eight goals for Bolton last season.