The Bundesliga club says the 21-year-old fullback from Edmonton is well and self-isolating at home.
Other players to have tested positive include Leroy Sane, Dayot Upamecano, Lucas Hernandez, Tanguy Nianzou, Manuel Neuer, Kingsley Coman, Corentin Tolisso and Omar Richards. Assistant coach Dino Toppmoeller is also self-isolating after a positive test.
Bayern returned to training Monday,17 days after its last competitive match of 2021 — a 4-0 win Wolfsburg.
Training was to have resumed Sunday but was pushed back a day due to the pandemic, with all players, coaches and staff undergoing PCR tests Monday.
With players dispersed around the world for the winter break, some of the Bayern players who tested positive are still abroad including Upamecano (Senegal), Coman (Dubai), Tolisso (France) and Hernandez and Neuer (the Maldives).
Davies posted social media photos from Mexico with girlfriend Jordyn Huitema, a fellow Canadian international who plays for Paris Saint-Germain, but made it back to Germany.
The COVID news comes just weeks before Canada is scheduled to play World Cup qualifiers in Honduras (Jan. 27), at home to the U.S. in Hamilton (Jan. 30) and in El Salvador (Feb. 2).
The Canadian men, who currently top the final round of CONCACAF World Cup qualifying standings at 4-0-4, are slated to play Guatemala in a Jan. 22 training match in Fort Lauderdale.
On the plus side for Bayern, Joshua Kimmich returned to the squad for the first time following his COVID infection.
Leon Goretzka, returning from injury, completed an individual workout with Serge Gnabry.
Bayern, which tops the German standings at 14-2-1, is slated to host Borussia Moenchengladbach on Friday.
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