City end their campaign against the Saints at the Academy Stadium on Friday and will be looking for victory in order to seal second place.
Davies acknowledges the competitive edge to the curtain closer but believes it’s more important that his players are equipped for loan moves ahead of next season.
He said: “A lot of these boys are going to go on loan soon and they have to be ready for that which playing in matches can only help with.
“Ultimately, these lads need to always keep on top of their game because the manager’s always looking and they’re going out on loan soon to make an impact next season.”
While Davies accepts that his youngsters may be looking ahead and considering a loan move, they must focus on representing their club well on Friday first.
“They have an obligation to play for Manchester City Football Club. When they put on the shirt they should want to play to our game plan and our philosophy and be proud to represent the club,” said Davies.
“They have done that all season and hopefully we’ll finish second and finish with a victory against Southampton.”
