The out-of-favour England international has put pen to paper on a deal until the end of the current season with the option of extending the deal.
Wilshere mentored Davies and other Arsenal academy players as he worked for his coaching badges.
Davies, 17, was invited to train with Arsenal's first team during the last international break of 2021 and he'll be hoping to follow in the footsteps of Wilshere who rose through the academy ranks before making his senior debut for the Gunners at the age of sixteen.
After the transfer was confirmed, Wilshere posted on Instagram : "Can't wait to get started @agffodbold. Thanks to the fans for the warm welcome. New chapter let's go".
Davies liked the post by the former Arsenal number 10 and added : "Good luck".
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