The Wales international striker`s current deal is set to expire at the end of the season.
"We have seven players out of contract at the end of the season and Robert is one of them," said Davies.
"I have recommended to the board that we keep Robert and offer him an extension to his current deal."
Earnshaw has scored 17 goals in each of the two seasons since moving to the City Ground from East Midlands rivals Derby in 2008.
Source: PA
Source: PA