Iheanacho is already part of Manuel Pellegrini's first team at City but he regularly turn out for the EDS squad in a bid to continue his development.
Davies has gone on to state that although Iheanacho is in the first team, but needs to feature for the reserves in order to earn regular game time for Pellegrini.He told the Manchester Evening News: "I think it is important that he's in the first-team squad.
He's training really well daily. Kelechi has been getting his moments with the first team as well and scoring goals.
"The manager really wants to make sure that when he gets an option to get some minutes under the belt it's good to do so, so that when he gets the chance to keep that shirt in the first team he's prepared.
"This was one of the only times that we've had recently - because we've got a break from Swansea on Saturday to Arsenal a week on Monday - where the manager has had an opportunity to say go and play some minutes. Kelechi did well, he worked hard and I think he'll benefit for that."
Davies added: "When he's playing with these boys and first team players in general you can see how far you are off and you can try and grade yourself and your skill-set compared to them," he said.
"Generally it gives a lift to everybody, especially when you see how hard they worked.
"Kelechi was fantastic. He didn't get his goal unfortunately but it will be good for everybody if he keeps getting them for the first team!
"He worked really, really hard and that's going to be only good for himself and the club."
