Davies has made a good impression at Villa this season after coming in for Zat Knight. He made his mark almost immediately with a key goal at Wigan and has formed a strong partnership with Dane Martin Laursen.
It is thought that he really impressed Capello in the F.A. Cup outing against Manchester United as he marked Louis Saha out of the game.
Davies joins Scott Carson, Gareth Barry, Ashley Young and Gabby Agbonlahor in the full setup.
Agbonlahor was expected to be named after a fine season. He is Villa's top scorer so far with seven goals and has played nearly every minute of the campaign.
More good news for the club comes from the Under 21's where Craig Gardner and Luke Moore have been named by Stuart Pearce.
It looks like the Villa will have a big say under Capello. He has been such a regular feature at Villa Park this season that the Corner Flag may soon become the best Italian restaurant around.