The centre has missed Wales’ defeats at the hands of Argentina and Samoa due to a groin injury but will return to full training this week.
Wales face New Zealand at the Millennium Stadium on Saturday and Edwards believes Davies can enhance their chances.
“He’s key to our defensive system,” said Edwards.
“You always miss your top players and we hope he comes through. It will also be great to have another centre to pick from.
“Ashley Beck scored a great try but you always want your most experienced players available, especially for the ultimate Test which is against the All Blacks.”
Warren Gatland will also return to the helm of the Wales management team for the final two Dove Men Series Tests against New Zealand and Australia.
And Edwards admits the presence of Gatland could also help Wales get their disappointing autumn campaign back on track.
“I’m sure Warren coming back will lift the spirits,” said Edwards.
“We’ve been a strong coaching team over the last five years.
“I expect him to be his normal self, he’s the gaffa and will give us some words of wisdom. As Saturday gets closer I’m sure he’ll become more and more involved.”
Following Wales’ consecutive shock defeats the All Blacks provide an even more daunting prospect than usual.
Edwards admits his players are under pressure to perform but he insists they have the ability to restore pride.
“For the players the pressure is on,” added the Wales defence coach.
“They know if they don’t perform it could get embarrassing against the All Blacks.
“If you’re slow getting in position, don’t keep your defence structure and don’t get enough possession you will be punished.
“The All Blacks are probably in better form now than when they were going into the World Cup final because they have a settled team and not as many injuries as back then.
“But in Australia we showed how well we can compete against the southern hemisphere sides. Yes we lost all three but when you look at Wales’ record down under they are the closet games we’ve had in the southern hemisphere.”
