The Scot, who has just over 12 months remaining on the three-and-a-half-year deal he agreed in January 2009, is keen to continue what he sees as a rebuilding job at the City Ground and believes he can get Forest out of the Championship and establish the Reds as a Premier League club.
"There is nothing at the minute, but I have said before that we are only part way through rebuilding this football club," Davies told the Nottingham Evening Post. "There is a long way to go still. With a year left on my contract, I will wait and see what happens.
"I have to say that I would thoroughly like to continue the progression of this club over the next number of years. I think that is what it is going to take to get us out of this division and where we want to be, but it is not my decision.
"In the last two transfer windows, progression has stopped and we still have a lot of work to do.
"But I would like to continue that progression and work to not only get out of this division, but also to become an established team in the top division. I would love the challenge of that. I still believe anything is possible."