Smith is expected to join City for an initial £300,000.
"I'd love to see Danny in a Crewe shirt, but whether that is likely I don't know," admitted Davis.
"I'm not too aware of the situation with him.
"He's obviously a talented player and one of the many we've got coming through. But I've left that with the chairman and Dario Gradi to sort out.
"I've stayed out of that as I've not seen enough of Danny to make a judgement."