The Wales international's loan period is also due to expire in January and Davies said it is vital Forest get their business done rapidly.
He said: "There are conversations going on with Aaron and a number of other people so we'll see what takes place.
"The recommendations have been made. It is very important that we get the situation sorted as quick as possible and get the dressing room settled down and firmly focused on getting this club back in the Premier League.
"There are just some areas we need to strengthen up on and some changes we need to make.
"There is no doubt that shaking the bag in the next window is very important, bringing in some freshness. Letting one or two who need to get games go and just freshening the dressing room is very important."
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