The former Derby County and Nottingham Forest manager has been considered a potential candidate to replace Craig Levein, who was sacked earlier this month.
However, the 48-year-old has revealed that he does not want to be considered for the role.
He told BBC Scotland: "I'm not ready for the job. It's not the right job for me at this time."
Davies has been out of work since parting company with Forest in 2011.