Souza is reported to have refused to sit on the bench after Davey didn't pick him in his starting XI. He opted to put Stephen Foster back into the squad at the expense of Souza.
Davey has held reconciliation talks with the 28-year-old defender who has failed to re-create his heroics of his debut season last year. Davey told BBC Radio Sheffield:
"Dennis wasn't picked and chose not to be on the bench, it's disappointing."
"You want all the players to be fighting in your corner. It was dealt with on the day and is finished with."
Davey added: "You look at the characters and you look at the players that want to win the game and be in the trench with you. He chose not to be in the trench with us.
"It's been dealt with now and we move on. He is in contention to face Derby.
"We have had a chat and he has had my point of view on it and he has apologised to the players.
"As manager of a football club, the club has to come first. Not any individual.
"I made the selection. It was the right selection because we won 3-1. And it will always be the right selection because it was me who was picking it."
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