Davies, 19, has lost his place in the starting lineup to Lucas Hernandez, who joined Bayern from Atletico for €80 million in 2019, since the start of the campaign.
Speaking at a news conference on Wednesday, Flick said that Davies' performances had not reached the levels of last season but he still has a chance to regain his spot.
"Alphonso's form dropped a bit," Flick said. "But he gets all our support. We benefit from his pace, his energy. It's important he gets back on track."
"It's a bit normal to see a young player go through such a spell following an incredible season. We will support and help him."
The Canada international impressed during the 2019-29 season where he shone on the left-wing and helped Bayern achieve a historic Treble.
His performances also earned him a place the shortlist for Tuttosport's Golden Boy award, where Davies is one of the headline names alongside Borussia Dortmund duo Erling Haaland and Jadon Sancho, and Manchester United striker Mason Greenwood.
After Bayern's 4-1 victory in the Bundesliga at Bielefeld, where Davies only featured for one minute, Flick said that the defender was paying the price for an outstanding 19-20 season.
Flick also added that Bayern can retain the Champions League this season if they can avoid major injuries and focus on every game.