PAUL Jewell will now have to turn his attentions to other striking targets after divisional rivals Bristol City announced the signing of the 24-year-old.
We understand Davies would have preferred to join Ipswich but the club and Derby were unable to agree a fee following weeks of negotiations.
This left Bristol City to steal a march and sign the striker for around �750,000 – while also considering a bid for QPR frontman DJ Campbell.
Davies has signed a three-year deal at Ashton Gate after the two clubs agreed a fee for his services on Sunday evening, subject to FA and Football League approval.
At the end of last season, Davies revealed he wanted to leave the Rams rather than sign a new extended deal at Pride Park.
This started a game of cat-and-mouse between Jewell and Derby boss Nigel Clough with the two clubs initially poles apart in terms of the fee.
Ipswich launched a fresh bid for Davies at the end of last week with Jewell, who was originally confident of it being accepted, confirming on Saturday that it had been turned down.
Derby have since signed Wigan striker Conor Sammon for an estimated �1.2 million.
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