The 32-year-old striker is settled in the North-West, with wife Emma expecting the couple's third child in the next couple of months.
Davies has been linked with a move to Hull in recent months to link up again with former Trotters assistant boss Phil Brown, but he insists the prospect of leaving Bolton has not entered this thoughts.
"I feel like I've been here forever" Davies told The Bolton News.
"It's my home and it has, without doubt, been the best time of my whole career.
"I have enjoyed every season since I've been at the club. I've played pretty much all the games, rarely been dropped - there has been no real downside.
"For someone who was released by Southampton six years ago, things have really managed to turn round."