It had been thought the tough-tackling Oranje star would sign a long-term deal with Barcelona, however the Catalan giants have not been able to agree terms.
Davids is out of contract once his loan deal with Barca ends, after joining in the January transfer window from Juventus.
The Nerazzurri are reportedly set to offer the Dutch star around ‚é¼3.5 million a year to join the club, although the Camp Nou side still hope to complete a deal.
Inter finished fourth in Serie A this season, and see the midfield as an area to strengthen after being linked with Chelsea's Juan Sebastian Veron.
It is expected more clues as to where Davids will play his football will be known after the final matches of the Liga season on Sunday.
