The veteran striker has seen his starting opportunities limited this season, leading some to question his future at the Reebok Stadium.
However, Coyle believes that the 34-year-old still has plenty to offer Wanderers.
"He is our captain, he is an integral part of the club and nothing changes in that way," Coyle told reporters.
"He will have been disappointed of course - as one or two others will have been - not to have been in the starting lineup of late, but we have changed the system and David Ngog has been playing terrifically in that lone striker role.
"Sometimes you have to be patient, but when your chance comes, you have to do your utmost to say 'here I am, I want to be playing in the team' and one or two did that."
Davies is currently in his ninth season with Bolton.