"We are fortunate that he is not first-choice for them at the minute and we had the opportunity to bring him in because he is a quality player," Davies told the Evening Post.
"I am obviously delighted. There is no doubt about his ability and what he has done with his career. I have admired him since his days at Reading and he has progressed into the national side. He is a fantastic addition to the squad."
Davies hopes Shorey will address the problem left-back area for Forest, with midfielder Chris Cohen having been asked to drop back into the back four in recent weeks.
"We all know that left-back has been an Achilles heel for us this season and, to be fair, we had asked Chris to drop back in there and he has done a very good job," said Davies. "We knew that over a long, hard season, with suspensions and injuries, it would be a problem area.
"We have Joel Lynch who can drop in there but I feel that his long-term future is at centre back. I wanted to add an out-and-out full-back with real quality and Nicky Shorey is certainly that."