The Sydney FC star, 39, is nearing the end of his career and is yet to re-sign with the A-League club, having been linked with another move to Asia.
Davids, who played alongside Del Piero at Juventus, said it was important for the former Italy international to learn before becoming a manager or director.
"I know him very well, but I think Alessandro Del Piero knows himself the best, better than everyone else, so only he can answer the question if he needs to stop or needs to play, it's his own decision," Davids said.
"But I think Ale can be a great asset for a team in a director (of coaching) position or whatever, but doing that, you need to first get some experience.
"You can't stop (playing) one day and be a director the other day. You need to have experience.
"He's bright, he's very intelligent and only he can answer the question of whether he wants to be a director or manager somewhere."
Serie A champions Juventus are hoping to expand their global brand to Japan with the launch of the J-Lounge in Tokyo.
Davids and Juventus president Andrea Agnelli were in the capital, with the latter speaking about the UEFA financial fair play rules.
Agnelli said teams across Europe, including big-spending Ligue 1 side Monaco, needed to create a level playing field.
"What we should all be working at is not so much the differences within the single countries but in harmonising within Europe so the fiscal pressure is the same and applicable to all teams participating at European level," he said.
"Obviously enough differences bring an unfair level of competition which is also analysed through restatement of accounts, but doesn't give a proper evaluation of how people are actually managing their clubs.
"We should start with a level playing field and state the numbers over a level playing field and this should be in the interests of European football as a whole."
