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With Webb undergoing surgery this week his status for the summer tour is uncertain, and Peel believes that Davies should be the man to replace him if necessary.
"He's definitely the form scrum-half at the minute," said Peel. "I'm sure he'll get the nod.
"He's scored more tries than anyone in the league. He's really developed his game over the last couple of years.
"His passing game has become really good - and his kicking and all-round game-management.
"He's very strong and physical, but what he can do is break particularly well... he's exceptionally fast."
There were concerns for Davies' health after he was stretchered off in the 32-30 win over Connacht on Sunday.
But coach Simon Easterby confirmed that there was no long-term damage, with Davies only suffering a dead leg.
"He has a dead leg, which hopefully won't keep him out for too long," said Easterby.
"It was a nasty one and the initial reaction was to make sure we get him off.
"Yes, the early consideration was that it might have been a break, but in his words, it was 'a mental dead leg'."