As SI.com first reported, Milwaukee had been awarded a waiver claim on Davis earlier this week. The Brewers offered to take on the remainder of Davis' deal, but were not open to giving any players away in a trade. In response, Arizona pulled Davis back off waivers.
Davis is 7-10 with a 3.62 ERA, and while he's been a consistent starter, he doesn't impress scouts with his mid-80s fastball. He is a free agent after the year. His 2009 salary is $8.75 million, so the Brewers would have been responsible for close to $3 million.
The 33-year-old lefty pitched for the Brewers from 2003-06, piling up a 37-36 record.