The agreement represents an important step as Udinese continue building for the future around key players.
Davis enjoyed the most productive campaign of his career in the 2025/26 season, scoring 10 Serie A goals.
Nicknamed the "Hero of Frosinone" after his decisive goal secured Udinese's survival in 2023/24, the English forward has since developed into one of Serie A's standout attackers.
“I’m delighted to continue my journey as an Udinese player,” Davis told Udinese website.
“From the moment I joined the club, and through the various difficult times I’ve faced, Udinese and its people have always stood by me.
“That means a lot to me - I feel loved here, and I feel the conditions are perfect for me to perform at my best and help the team continue to improve.”