Davies – who amassed a career-high 1,115 red ball runs in 2024 – has agreed a new deal that ties him to the Club until at least the end of the 2027 season.
The 30-year-old has made 85 appearances for the Bears across all formats – scoring 2,201 Championship runs – and is now just 26 runs short of 7,000 in First Class cricket.
Davies said Edgbaston and Birmingham now feel like home having moved from Lancashire in 2021.
“I was relatively happy with my red ball form last season, but I’m hungry for more,” said Davies, who was named in the PCA Team of the Year 2024.
“I don’t feel I quite matched that or showed 100 per cent of my ability in the Vitality Blast so the goal for me is to nail that consistency of runs for the Bears across all formats.
“I’m hopefully at an age and experience now where I can do that and let the youngsters flourish around me.
“But I’m under no illusions that results weren’t what we wanted or expect here.
“I’m excited and fully committed to help lead this great county back to the silverware it and our fans richly deserve.”
Davies has captained Bears Vitality Blast side for the last two summers and has won 20 of 26 T20 games under his leadership.
He added: “The white ball captaincy has gone well but we’ve fallen short in two quarter finals now when I’ve led the side.
“It’s about putting that right as well as turning some of our good red ball performances into victories to make sure we’re challenging at the right end of the table moving forward.”
Warwickshire Performance Director Gavin Larsen, added: “It’s great to have extended Alex’s contract by another year through to the end of 2027.
“An extended contract offers both Alex and the club longer-tern stability and allows us to plan for the next few years.
“He has excellent captaincy attributes and, with a season now under his belt and all the experience that comes with that, I’m looking forward to the next chapter.”