Following an impressive performance against them on the opening day of the 2007–08 season, Leeds United unsuccessfully attempted to sign the winger on three separate occasions, though a statement on the Tranmere website on 29 August 2007 saw manager Ronnie Moore refuse to rule out that a deal might eventually be made, though nothing eventually came of Leeds interest. Davies was involved in all 10 of Tranmere's opening fixtures but missed the majority of the rest of the campaign through injury, only returning to the side in April 2008 for the 2–0 home defeat against Forest. Davies finished the season with 12 appearances and two goals.