Davies was released by League One Yeovil this summer
Peterborough United have completed the signing of former Yeovil Town winger Arron Davies on a two-year deal.
The 26-year-old has been training with Gary Johnson's squad and travelled with them to their training camp in Portugal on Friday morning.
Johnson, who managed the Welshman at Yeovil, told the club website: "He has trained with us for the last three weeks and we have seen what he can do.
"He can play on either wing and can play as a striker."
Davies' first spell with the Glovers saw him score 25 goals in 110 games and earned him a move to Nottingham Forest in 2007.
If I can get him back to his best we have an absolute bargain and I am sure we will see the best of him
Peterborough boss Gary Johnson
But since then he has struggled to overcome a variety of injuries and, after a loan spell at Brighton, spent the second half of last season on a short-term contract back at Huish Park.
"He had a bad injury that wasn't diagnosed for a while and that stopped him playing as many games as he should have done of late," Johnson added.
"However he is back fully fit and raring to go.
"If I can get him back to his best we have an absolute bargain and I am sure we will see the best of him."
The former Southampton trainee has one Welsh international cap to his name, coming on as a substitute in a 2-1 defeat against Trinidad & Tobago in May 2006.
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