Speaking at a dinner in Cardiff to mark the board of governors' visit to Wales, Davies warned against any attempts to change it when the BBC's charter is renewed in 2006.
"The model has worked -- not in the interest of politicians, or of the BBC's commercial competitors, but in the public interest," he said.
The 80-year old governance of the broadcaster has been a constant source of debate in recent years. The system was called into question during the drafting of the Communications Act, when the commercial sector lobbied that the BBC should be brought under the control of the new communications watchdog Ofcom.
Then a cloud was cast over the system when the Hutton Inquiry into the death of scientist David Kelly revealed that the BBC governors backed Andrew Gilligan, the journalist at the centre of the issue, without checking the facts.
However, Davies said the BBC governors was working with the corporation's executive committee, on which director general Greg Dyke sits, would ensure that lessons were learnt from the David Kelly affair as well as looking at other issues.
"The Governors in September asked the director general and the executive committee to formulate proposals for reform in several key areas including the producers' guidelines relating to the breaking of controversial stories and to the use of anonymous sources, as well as compliance with these guidelines; the BBC procedures for considering and handling complaints in the Ofcom era; and the rules under which BBC journalists can write for newspapers and other journals.
"Some of these areas were related directly to the Kelly affair. Others were not. All of them merited a re-think," he said.
The governors are currently considering these proposals and Davies said he expected final decisions to be fully supported by both boards.
Davies added that the BBC's approach to its journalism remained unchanged.
He said: "Impartiality, accuracy and fairness have always been the BBC's drumbeat. Our commitment to these values has never wavered. And it will not do so now."
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