Madrid have shown keen interest in the talented Canadian international as they search for a top-class left-back.
The 22-year-old and his agent Nedal Huoseh were in talks with former Bayern sporting director Hasan Salihamidzic over a new deal.
But Bayern dismissed Salihamidzic after their Bundesliga win, forcing Huoseh to step back and re-evaluate.
However, the likelihood of a deal materialising this summer seems slim. Bayern are adamant that Davies is not for sale.
Davies has faced playing time challenges during the latter half of the season due to niggling injuries.
Bayern manager Thomas Tuchel has emphasised Davies’ importance to his plans for the upcoming Bundesliga season.
Despite the imminent signing of Raphael Guerreiro, Davies will have a consistent role within the team.
Alaba’s comments could potentially give Madrid an edge if Davies decides to pursue a move in the future.
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