According to Reports, Town are willing to let the former Luton goalkeeper, who is contracted until June 2006 at Portman Road, leave for a cut price fee of just £700,000.
However half of that sum would go to the keepers former club, Milton Keynes Dons who had a 50% sell on clause inserted in the deal that took Davis to Town on a free transfer in the Summer of 2003.
Sunderland are also in talks with midfielder Tommy Miller over a move to the club in the Summer, and are said to be interested in taking strike pair Shefki Kuqi and Darren Bent to the Stadium of Light.