Merthyr coach Lee Jarvis has confirmed the former Wales coach has had talks with the Welsh Premiership finalists.
"I think Nigel's coming on board, I'm not sure what capacity," Jarvis told BBC Wales Sport.
Jarvis and assistant Dale McIntosh will be in charge of Merthyr against Aberavon in the final at the Talbot Athletic Ground on Sunday, 21 May.
Merthyr finished third in the regular season Premiership table, five places ahead of Ebbw Vale.
According to Jarvis, Davies has met Merthyr chairman Sir Stanley Thomas.
"Obviously, conversations have gone on between him and Sir Stan," he added.
"But myself and Dale are not concerned with that, we're just concentrating on the final come Sunday and that's all we're focussing on."
Nigel Davies is poised to join Merthyr RFC after leaving his role as head coach of Ebbw Vale.