Allardyce admits Blackburn made an enquiry to sign the striker as they seek reinforcements following the departures of Roque Santa Cruz and Matt Deryshire last week.
Davies has previously had an unsuccessful spell at Blackburn, scoring just twice in the 1998/99 season after costing £7.5million from Southampton.
However, Allardyce, who signed Davies during his time in charge of Bolton, is a big fan of the powerful hitman and was keen to be reunited with him.
Allardyce will now look elsewhere for a new striker after admitting
Rovers chairman John Williams contacted Bolton about Davies, but without success.
"John told me on Thursday that Kevin Davies is not available," said Allardyce. "As far as I'm concerned that is it."
Prem W/out Top 4 2009/10 Win Outright: Blackburn 66/1