He has settled quickly into life in England, putting in a number of assured performances as Forest have climbed steadily up the Championship table.
A promotion push is now very much on the cards and Davies is hoping he can persuade the 23-year-old to commit his long-term future to the club.
"Raddy is somebody we would like," the Scot said in the Nottingham Evening Post.
"He is certainly somebody I would recommend we sign on a permanent basis."
Davies, who has admitted that he is hoping to bring in two or three fresh faces during the January transfer window, could also move to tie on-loan defender Nicky Shorey down on a full-time contract, but admits he has given little thought to agreeing such a deal with Aston Villa.
He added: "It is not even on my mind. All we can think about now is that we have got him until the end of January.
"At the end of the month we will look at our options.
"Whether I would like to keep him permanently or not depends on our options and on our budget."
West Brom 5/6, Draw 12/5, Nottm. Forest 10/3
Source: Team Talk