In June 2008, Davies signed for Brive on a two-year contract before moving back to the UK, having spells with the Ospreys, London Welsh, Scarlets and the Dragons.
Speaking of the signing, Cardiff Blues Director of Rugby, Phil Davies said,
"Liam is a player that I am familiar with having coached him as a 19 year old in the Scarlets.
"He is a very talented scrum half who has a great pass, a good kick and does the basics well.
"He played alongside Andy Goode in Brive and has come home looking for an opportunity to play.
"He will give us extra cover at scrum half for the rest of the season with Rob Lewis having returned to London Welsh on a loan spell."