Sherman suffered a season-ending Achilles injury on Thursday at Arizona and the Seahawks are bringing back Maxwell to add depth at cornerback.
Maxwell worked out for the team on Monday before signing the contract. The veteran corner started opposite Sherman and played a huge role during the Seahawks' back-to-back Super Bowl appearances in the 2013 and 2014 seasons.
Maxwell spent only one season with the Eagles before being traded to the Miami Dolphins.
An official announcement of Maxwell's signing, which was confirmed to the Seattle Times, will likely come before the team returns to the practice field this afternoon - players were given the weekend off following the Arizona game.
Davis is former fourth-round pick by the San Francisco 49ers out of SC. He was released by Miami late last month after playing just two games this season, having been benched and also dealing with a hamstring issue. In the preseason, he led the Seahawks with 106 yards rushing and caught five passes for 41 yards. He has 108 yards and one touchdown on the ground to coincide with his 10 career catches for 63 yards.