Both players were offered a one-year, $17.4 million deal by the Cubs, but both rejected the offer as they look to cash in on the open market by becoming unrestricted free agents.
Cubs' MLB.com reporter Carrie Muskat broke the news on Thursday afternoon.
Arrieta, who made just under $16 million last season, will arguably be the top free agent starting pitcher on the market, and could command a contract in excess of $150 million with numerous teams in pursuit of his services.
2018 Free Agency: Cubs Hitting the Market
As for Davis, he’ll still command a hefty deal after making $10 million a season ago. Acquired for Jorge Soler in a trade with the Kansas City Royals, Davis will join other talented relievers like Brandon Morrow and Greg Holland.
Both players can still re-sign with the Cubs, but it doesn’t appear likely that the team will pony up the money needed to keep both pitchers in Chicago.
If the pitchers opt to sign elsewhere, then the Cubs will receive draft pick compensation in next year's MLB Draft.