The 25-year-old spent last season on loan at second-tier outfit Watford, scoring seven times in 34 appearances as the Hornets failed to earn promotion to the Premier League.
Davis was under the tutelage of current Hatters boss Rob Edwards briefly at Vicarage Road during the first part of the 2022-23 campaign, although 40-year-old was swiftly dismissed only a month into the term.
Since making his first-team debut for Villa in December 2015, the forward has only managed six goals in 86 appearances for the Second City club, although he could now be handed the opportunity to play regular football in the Premier League elsewhere.
According to The Athletic, Luton are amongst a host of clubs monitoring the situation of Davis in this transfer window, as the Hatters look to avoid an immediate return to the Championship.
Edwards guided the Kenilworth Road club to a first-ever promotion to the Premier League last term, with the Hatters' campaign concluding on a magical day at Wembley, where they defeated Coventry City in the playoff final.
It is understood that Davis is not currently part of Unai Emery's first-team plans for the 2023-24 season, meaning that the Europa Conference League-bound club are willing to offload the striker.
The former Nottingham Forest loanee was left out of Villa's squad who have travelled to feature in the inaugural running of the Premier League Summer Series in the United States.
The report adds that Emery's men are ready to negotiate with any potential suitors, and it is believed that the Villans will be looking for a financial package in the
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