The 44-year-old actor, whose role has not yet been confirmed, announced the news in a video posted on Facebook and Twitter.
In the clip, we see Davis back in July 2013, pleased with the news of more 'Star Wars' films being made and waiting patiently for a call to pull on his Ewok costume again.
Over a year passes before his phone rings with an offer of a role from director JJ Abrams - despite executive producer Kathleen Kennedy previously telling him his name "crops up daily" in cast discussions.
Davis played Ewok Wicket in 'Star Wars Episode VI - The Return of the Jedi'.
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'Star Wars Episode VII' will pick up the story of Luke Skywalker, Han Solo and Leia 30 years after the events of 'Return of the Jedi'.
Original stars Harrison Ford, Mark Hamill, Carrie Fisher, Kenny Baker and Peter Mayhew are returning, with John Boyega, Daisy Ridley, Adam Driver, Domhnall Gleeson and Lupita Nyong'o among the new faces.
The movie will debut in cinemas on December 18, 2015.