While fellow Australian Aaron Mooy has firmly cemented himself as the Terriers talisman, things have taken the opposite turn for Davidson.
Davidson, who joined the Terriers in 2015, returned to the English club in the off-season after spending a year on loan at Dutch side FC Groningen.
The 26-year-old had a solid campaign in the Eredivisie, making 22 appearances for the Pride of the North.
However, it wasn't enough to seal a permanent move to the Dutch club with Davidson returning to West Yorkshire to find himself without a squad number and training with the Under-23s.
And if that wasn't enough of a blow for Davidson, German coach Wagner has admitted he's keen to offload him altogether.
The defender’s three-year contract with Huddersfield finishes in June 2018, but Wagner admits he'd be happy to let Davidson go before then.
“He's training with the Under 23s and if there are offers for him, I'll be open to them,” he said.
Asked if there was any way back into the first-team for the Australian, Wagner replied bluntly: “No”.
Davidson missed Huddersfield’s heroic promotion from the Championship last season, where Mooy played an integral role.
Mooy was one of the Terrier’s best as they ended their 45-year wait to be back in England’s top flight with a penalty shootout win over Reading FC at Wembley.
With left backs Chris Lowe and Scott Malone in front of him, Davidson’s future lies firmly away from the West Yorkshire outfit.
Davidson moved to West Bromwich Albion in 2014 following the World Cup, where he played all three group games for Australia, before heading to Huddersfield a year later.
He was also part of Australia's Asian Cup-winning side, but has fallen out of Ange Postecoglou’s Socceroos calculations in recent times making his last international appearance in 2015, with Brad Smith, Aziz Behich and Alex Gersbach all preferred on the left of defence.
While Davidson’s Terriers career is coming to an end, Mooy’s is thriving under Wagner.
The midfielder picked up an assist in the club’s impressive 3-0 victory over Crystal Palace in their Premier League season opener, earning Wagner's praises.
“I was very pleased with his performance as he only had three weeks pre-season because of playing in the Confederations Cup,” the 45-year old said.
“He will need more training, more weeks and more game time to come up to the highest level but he's showed a high level against Crystal Palace.
“His partnership with Philip Billing was as strong as ever and I haven't been surprised as they showed it in the Championship. I only said to them, 'It's only up a level. Work hard to get to that level.”
Huddersfield and the Socceroos star take on Newcastle United at home on Sunday.