Davis, 28, had a career-high 642 rushing yards and six touchdowns on 165 carries in 15 games last season while filling in for injured Carolina Panthers starter Christian McCaffrey. He also had 59 catches for 373 yards and two receiving scores.
Davis entered the league as a fourth-round pick by the San Francisco 49ers in the 2015 NFL Draft. He joined the Seattle Seahawks in 2017. Davis also played for the Chicago Bears in 2019. The Panthers claimed Davis off waivers from the Bears the same season.
The South Carolina product has 2,334 yards from scrimmage and 14 touchdowns in 62 career appearances. Davis has averaged 3.7 yards per carry for his career.
The Falcons, who have not re-signed 2021 starter Todd Gurley in free agency, now have Davis, Ito Smith, Qadree Ollison and Tony Brooks-James on their depth chart at running back.
Gurley had 679 yards and nine scores on 195 carries in 15 starts last season for the Falcons.