Davies was sacked as Forest boss in June and was replaced by Steve McClaren shortly after.
However, former England manager McClaren decided to resign from his position on Sunday after 112 days in charge at the City Ground.
"Billy is a tremendous manager and if that was an option then it should be explored," said 26-year-old Chambers.
"Billy brought us tremendous success in the last few years without getting over the line. He knows what it takes to win in the Championship."
Forest are currently one place above the relegation zone in the Championship table.