After the judges' scores and the viewers' votes had been added together, the swimmer and her professional partner Pavel Aubrecht found themselves in the skate-off alongside Emily Atack and Fred Palascak.
Both couples then had to repeat their routines in an attempt to persuade judges Karen Barber, Nicky Slater, Jason Gardiner, Emma Bunton and Angela Rippon to keep them in the competition.
Bunton, Slater and Rippon all decided to save Atack, meaning that Davies had to leave the show. Barber and Gardiner then also revealed that they would have kept Atack in the competition.
After hearing the decision, Davies said: "I have enjoyed my time here. First and foremost, I had the best partner I could ever wish for. It's been just fantastic. I've really enjoyed the guys over here - they're great skaters and most importantly they're fantastic people.
"The atmosphere backstage is amazing, so thank you so much for the experience. And I won't be hanging up my skates - I will still be going down the ice rink!"
Aubrecht added: "It was brilliant, I'm sorry we have to part. It's been such a tremendous journey and I think we made such progress. We started to see you loosen up and enjoy it more, and to me that was the best part."
Dancing On Ice continues next Sunday at 6.50pm on ITV1.