The 25-year-old kicked 21 points in the Lions' series clincher against Australia in Sydney, taking his series tally to 49 - both of which were record hauls - and Davies has no concerns about using Halfpenny at fly-half.
"Leigh is great in attack. We put him in for some of the defensive elements in training and he was good there," Davies told Wales Online.
"There are different timings and different space to police at outside-half but we know Leigh very rarely misses tackles. He's got enough skill to play at 10 so we're lucky."