Recent reports have claimed that West Bromwich Albion are interested in a summer move for the Scotland international.
Davies says that the recent reports confirm the good work manager Brendan Rodgers and his players have done at the club over the season.
He said: "One of the consequences of what we're achieving and what we're doing is that people get linked with other clubs. That's a positive because it means you are doing something really good. It's a 'well done' to the whole team and the individuals for their performances.
"Stuart has said he wants to stay. We want to keep our best players here.
"We're building and developing a team and players. We love working with Stu and his game has developed.
"I've been aware of his comments regarding Brendan's development of him as a player and he feels that bond with the manager."
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