The 60-year-old was head coach of Scarlets between 2008 and 2012 after previously being assistant under Gareth Jenkins, while he has also had roles with Wales, Gloucester, Ebbw Vale and Merthyr.
Scarlets say Davies will report directly to the board with “overall accountability for rugby performance, results and selection”, while Peel will lead the coaching, preparation and technical delivery.
“This is about bringing clarity, alignment and stability to the rugby programme,” added the 29-times capped former centre.
“I will take full accountability for performance and results, set clear standards for how we play and behave and ensure the environment supports players and coaches to perform.
“My focus is on simplifying messages, reinforcing Scarlets identity and values and creating the conditions for improved results, both in the short term and beyond.”
