The midfielder joins the reigning MLS Cup winners after a standout 2024 campaign.
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Davila was a finalist for the 2024 USL Championship Player of the Year.
Louisville City FC is the first USL Championship team to punch its ticket for the postseason.
Wilson Harris scored the game-winning goal in stoppage time to complete a flurry of second half goals at Lynn Family Stadium.
Louisville City FC has won back-to-back games after a 4-1 victory over Monterey Bay FC at Lynn Family Stadium on Saturday.
There was nothing Birmingham could do Saturday to stop the offensive output from Louisville City FC.