The Mid Wales star is parting ways with Aruba.it Racing – Ducati after the team decided to stick with his current team-mate, Scott Redding, while replacing Davies with Italian Michael Ruben Rinaldi for 2021.
During his sublime seven years, Davies, 33, has amassed 27 race wins and 86 podiums, finishing second in the championship three times and third once.
Only the unstoppable Northern Irishman Jonathan Rea, who is on course to win his sixth-straight title this weekend with Kawasaki, has faired better.
For the second time in the 2020 season, the series has stopped at a new circuit this weekend, with the final round taking place at Estoril, in Portugal.
Davies, from Presteigne, who currently sits third in the championship, said: "Although I had hoped to continue together in 2021, all good things must come to an end.
"These seven years as a Ducati factory and Aruba.it Racing rider have been unforgettable.
"I have many great memories from what we accomplished together – 27 race wins, 86 podiums, three times second position and one third position overall in the WorldSBK championship are all achievements to be proud of.
"I want to say a sincere thank you to all those who have been involved in this project and to the Ducatisti who have supported me over the years.
"I'll do my best this weekend to finish this chapter on a positive note and try to lock down another P3 in the overall standings.
"Although it has been 15 years since I last raced in Estoril, I have clear memories of the circuit. I can't wait to go on track and be competitive in the last race weekend of this pretty particular season".
Davies' team-mate, Redding, still has an outside chance of claiming the title. With 62 points up for grabs, he sits 59 behind Rea.
Three races, including the points-scoring Superpole, take place over today and tomorrow (SAT/SUN).