Davies, 31, was first team coach at Widnes and is also employed by Liverpool as an academy coach.
He said: ‘I’m delighted to accept the role as first team manager at Prescot Cables FC. Being a local lad, it’s great honour to be given a fantastic opportunity, trust and backing by the club to take us forward.
“The work starts right away to ensure we are competing at the right end of the table. I’m looking forward to meeting the players and fans as we come together to bring success back to this football club.
“The fans will see an exciting brand of football, modern approaches and a real enthusiastic, passionate, hungry and attack minded football team. Look forward to meeting you all soon. Up the pesky bulls.”