Safety C.J. Spillman posted an Instagram video of his teammates celebrating Davis' return in the team's locker room.
Davis, 30, skipped a mandatory minicamp in June and earlier voluntary workouts in a bid to get his contract reworked. Davis is the fourth highest-paid tight end in the NFL.
Davis' contract runs through 2015. He is schedule to earn base salaries of $4.7 million this year and $4.35 million next year.
ESPN.com reported that a source said Tuesday night that Davis was likely headed to camp because he didn't want to incur a daily fine of $30,000 for missing training camp practices.
Meanwhile, guard Alex Boone is expected to continue his holdout into training camp. Boone, 27, is considered a top guard although he is the 43rd highest-paid guard in the NFL, according to ESPN.