The Groningen left-back, a key member of Ange Postecoglou's 2014 squad in Brazil and a 2015 Asian Cup winner, sees soaring potential in the 20-year-old former south Melbourne junior Hrustic, who scored his maiden goal for their Dutch outfit at the weekend.
Hrustic came off the bench to score Groningen's fifth in a 5-1 thumping of PEC Zwolle and was described by Davidson "as a talent".
"He's a good player... one for the future," said Davidson, who is nearing the end of a season-long loan from Championship promotion chasers Huddersfield Town.
"He's skillful, fantastic on the ball and is just now breaking through into the first team.
"He's come off the bench a few times (three to date) and that goal will give him a lot of confidence to build on.
"Hopefully he'll just take it on from here... I feel next year could be a big one for him if he keeps going the way he is."
A winger who can operate on the left or right, Hrustic joined Groningen after spending two years with German club Schalke's youth ranks.
He was a part of an Australian development squad camp in Spain last month, and is being courted by Bosnia, the land of his heritage.
"If he keeps working hard he'll have a bright future," added Davidson.
Davidson' own future remains unclear, with a year remaining on his Terriers contract and Groningen keen for him to remain in the Netherlands beyond this season.
With Huddersfield pushing for Premier League promotion Davidson wished his former Terriers teammate Aaron Mooy and the side well.
"I know they (Groningen) are talks about next year and want me to stay... it will be a matter of waiting till the end of the season.
"I am still a Huddersfield player... they have been fantastic this year and I wish them all the best in hopefully getting promoted to the Premier League."
Davidson has been playing regularly since overcoming a mid-season injury and with Groningen pushing for a chance to qualify for the Europa League, aims to finish the season on a high.
The 25-year-old also hasn't forsaken hopes of winning a green and gold recall, having slipped behind the likes of Brad Smith in the pecking order.
"It's just good to be playing regularly and doing well for my team right now," he added.
"You never know what can happen (with the national team)... I am sure they are keeping tabs on everyone and have been watching games, just as they do with every other player.
"But that's out of my hands... all I can do is perform, play well and keep playing each week at a good level.
"I'm happy how things have been going but with the national team I don't know what the boss is thinking regarding the Confederations Cup."