Jones is Wales' most capped player and was a part of Warren Gatland's RBS 6 Nations Grand Slam-winning side, although he failed to make an appearance.
However he has kept his hopes of donning the red of Wales alive after signing to play in the Aviva Premeirship, something Davies believes he will excel at given the chance.
"I said that we could look to find an opportunity for him in the coaching set-up here. But Steve was adamant that he wanted to play," said Davies.
"He has never shied away from a challenge and at his age, I think a new challenge is exactly what he would need if he's going to continue playing.
"So he'll see it as a big challenge and want to prove himself in that league and I'm sure that's what he'll do."