The 21-year-old's previous deal was due to expire at the end of the season.
However, the defender has now committed his future to the League One outfit until the summer of 2016.
"I've been at Gills since I was seven so I'm happy. I'm really enjoying my football, I'm pleased to have sorted it out and I can now concentrate on my game," he told the club's official website.
Davies made his senior debut back in 2010.
Restore Data
| Team | P | W | D | L | F | A | GD | PTS | |
| 1 | Gillingham | 9 | 6 | 1 | 2 | 12 | 3 | 9 | 19 |
| 2 | Notts County | 9 | 5 | 3 | 1 | 17 | 8 | 9 | 18 |
| 3 | Walsall | 9 | 6 | 0 | 3 | 17 | 10 | 7 | 18 |
| 4 | BarrowBarrow | 9 | 5 | 1 | 3 | 11 | 6 | 5 | 16 |
| 5 | Doncaster RoversDoncaster | 9 | 5 | 1 | 3 | 12 | 12 | 0 | 16 |
| 6 | Fleetwood TownFleetwood | 8 | 4 | 3 | 1 | 16 | 9 | 7 | 15 |
| 7 | Port Vale | 9 | 4 | 3 | 2 | 14 | 12 | 2 | 15 |
| 8 | Grimsby Town | 9 | 5 | 0 | 4 | 13 | 14 | -1 | 15 |
| 9 | Newport CountyNewport | 9 | 5 | 0 | 4 | 15 | 17 | -2 | 15 |
| 10 | Chesterfield | 9 | 3 | 4 | 2 | 15 | 8 | 7 | 13 |
| 11 | AFC Wimbledon | 6 | 4 | 1 | 1 | 9 | 4 | 5 | 13 |
| 12 | Crewe AlexandraCrewe | 8 | 4 | 1 | 3 | 8 | 9 | -1 | 13 |
| 13 | Bradford CityBradford | 9 | 3 | 3 | 3 | 11 | 10 | 1 | 12 |
| 14 | MK Dons | 9 | 3 | 2 | 4 | 12 | 11 | 1 | 11 |
| 15 | Colchester UnitedColchester | 9 | 2 | 4 | 3 | 13 | 15 | -2 | 10 |
| 16 | Cheltenham TownCheltenham | 9 | 3 | 1 | 5 | 11 | 14 | -3 | 10 |
| 17 | Tranmere RoversTranmere | 8 | 2 | 4 | 2 | 4 | 8 | -4 | 10 |
| 18 | Harrogate TownHarrogate | 9 | 3 | 1 | 5 | 9 | 16 | -7 | 10 |
| 19 | Bromley | 9 | 2 | 3 | 4 | 12 | 14 | -2 | 9 |
| 20 | Salford City | 8 | 2 | 3 | 3 | 5 | 9 | -4 | 9 |
| 21 | Swindon TownSwindon | 9 | 1 | 4 | 4 | 9 | 13 | -4 | 7 |
| 22 | Carlisle UnitedCarlisle | 9 | 2 | 0 | 7 | 10 | 19 | -9 | 6 |
| 23 | Morecambe | 9 | 0 | 4 | 5 | 7 | 12 | -5 | 4 |
| 24 | Accrington StanleyAccrington | 8 | 0 | 3 | 5 | 9 | 18 | -9 | 3 |
| > League Two Full Table | |||||||||
