Davies has been an integral member of the Bolton team since joining from Southampton in 2003 and he recently passed the 300 appearance mark for the club.
His strike partnership with Johan Elmander this season has been a key factor in the Trotters sitting sixth in the table and he was also rewarded with his first England cap in October.
The 33-year-old, who is under contract until 2012, has no complaints with life in Bolton and is eager to see out his playing days with the club.
"Bolton has become home to me now, we're very settled in the area and have some great friends here," Davies told the Bolton News.
"The local people have been amazing for us. I don't think I can recall one instance where we've had any bother.
"The football is as good as it's ever been, and living in the town I get a lot of feedback, and long may that continue.
"In terms of football, I'd like to finish my career at Bolton and then hopefully stay in the game.
"I'm not sure what level it would be at, but right now I'm trying to enjoy this season and next season when my contract takes me to, and then go from there.
"We love the area, and though you can never tell in life, hopefully this will be where we remain."
Barclays Prem Top 4 Finish 10/11 Top 4 Finish: Bolton 20/1
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