Davies has been sidelined from Test rugby for four months and has seen just 105 minutes of competitive action for the Scarlets since suffering a torn pectoral muscle during Wales' opening autumn series defeat by South Africa on November 9.
But the 25-year-old centre, a key performer in the Lions' Test series triumph against Australia last summer, returns to resume his powerful midfield partnership with Jamie Roberts. With Davies back, George North, who deputised in the No.13 shirt against France last month, reverts to his familiar wing position, with Liam Williams dropping out.
"He [Davies] has been training really hard," said Warren Gatland, Wales' head coach. "He is a world-class player, so it wasn't difficult for us to make that call. He is really sharp at the moment."
One other change from the side that accounted for France has fit-again lock Alun-Wyn Jones taking over from Jake Ball.