The midfielder joined the club at the age of 11 and rose through the ranks before making his first team debut at the age of 17.
Since then he has gone on to make 179 appearances for the club, including captaining the club at the age of just 20, as well as skippering England all the way up to under-21 level.
However the 24-year-old has fallen out of favour this season, starting just four matches in the Premier League as the Toffees narrowly avoided relegation.
With Davies' contract expiring in the summer, Everton had offered the player the chance to extend his stay, however that proposal was turned down by the player.
Everton's director of football, Kevin Thelwell said: "We offered Tom a new contract, but he feels he has reached the stage in his career where he needs regular first-team football.
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"As a result, he wants to look at alternative options away from Everton."
Davies is now looking for a new club, with Rangers among those interested in a move.
Gers' boss Michael Beale spoke earlier this year of his admiration for the midfielder and confirmed they had been in talks, saying: Tom Davies, he used to kick my Liverpool Under 23s team all around the place. There's a bit of John Lundstram about him."
However it remains to be seen what the future will hold for the midfielder as he looks to kickstart his career once again.