The 35-year-old boss of the club's academy had seen his chances diminish with two defeats in a row, but three points from this Boxing Day thriller revived his chances.
Davey is already on a five-man shortlist thought to include ex-Leeds manager Kevin Blackwell and former Norwich boss Nigel Worthington.
A good result against local rivals Sheffield Wednesday on Saturday could open the door even further for the unknown man from the backroom.
But after Martin Devaney gave the home side the lead, Barnsley's advantage was left hanging by a thread in a frantic fightback by Burnley.
Forget the Christmas television, this was a gripping clash that would put the best the small screen has to offer in the shade.
As early as the fourth minute, Grant McCann - due to sign a permanent deal with Barnsley next month - might have grabbed his second goal since he arrived on loan from Cheltenham.
A Devaney short corner was fed through to McCann who produced a tremendous curling effort that grazed the bar and went over and it set the tone for the rest of this high energy encounter.
A touch of brilliance from Barnsley striker Daniel Nardiello saw him stretch to fire an angled effort but Brian Jensen made a comfortable save before a glancing header from Paul Hayes was tipped around the post.
Robert Atkinson headed Devaney's resulting corner over and then Sam Togwell deserved a goal for a stunning 30-yard strike that beat Jensen but smacked back off the angle of bar and post.
The best move of the first half gave Barnsley the edge when Devaney snatched the lead after 30 minutes with his third goal of the season.
Nardiello's crafty turn beat Wayne Thomas and created space for Devaney whose first-time shot beat Jensen from 12 yards out.
A minute later Burnley could have levelled but in a scramble Barnsley somehow managed to clear off the line and when the ball ricocheted back it hit the post.
Burnley were screaming injustice on 60 minutes when Barnsley keeper Nick Colgan was left stranded by a Steve Jones cross and Kyle Lafferty stretched to stab the ball in but Atkinson slid in to force a corner amid claims he controlled with his arm.
Two minutes later only an incredible last-ditch interception denied Jones an equaliser when he rounded Colgan but his shot was cleared by Bobby Hassell.
Barnsley's Kyel Reid should have settled the result after 74 minutes when he broke through but Jensen produced a great save.
Coca Cola Championship Result Tuesday 26th December 2006
Barnsley 1-0 Burnley
Birmingham 2-1 QPR
Cardiff 2-2 Plymouth
Colchester 4-1 Luton
Coventry 1-2 Ipswich
Derby 0-2 Wolves
Hull 1-2 Leicester
Norwich 0-0 Southend
Southampton 1-1 Crystal Palace
Stoke 1-2 Sheffield Wednesday
Sunderland 2-0 Leeds
West Brom 4-2 Preston
Barnsley lie in 21st place in the Coca Cola Championship with 26 points from 25 games. We are 14 points off the Play-Offs, 18 points off the Automatic Promotion Places, 26 points off First Place and 5 points above the Relegation Zone.
Next Up:
At Oakwell:
Barnsley v Sheffield Wednesday Saturday 30th December 2006 Kick Off 1pm PLEASE NOT EARLIER KICK OFF TIME!
THIS GAME IS NOW ALL TICKET AND NO TICKETS WILL BE AVAILABLE ON THE DAY OF THE GAME.
Tickets for the big games are priced at:
East Stand and West Stand Upper Tiers
Adults £22.00
OAP/Juvenile £13.00
Juveniles (U11) £7.00
Barnsley Chronicle Family Area
Adults £22.00
OAP £13.00
Juvenile £13.00
Juveniles (U11) £7.00
East Stand Lower and West Stand Lower
Adults £21.00
OAP/Juveniles £12.00
Juveniles (U11) £6.00
Enterprise PLC Stand (Pontefract Road End)
Adults £20.00
OAP/Juveniles £12.00
Juveniles (U11) £6.00
All Disabled Areas £20.00
Helpers FREE OF CHARGE
To book tickets for forthcoming matches simply phone the Oakwell Box Office on 01226 211200. Alternatively call at the Box Office in person; contact the Box Office by fax on 01226 211444 or e-mail boxoffice@barnsleyfc.co.uk. Please note that Juvenile U11 tickets must be purchased in advance from the Oakwell Box Office and this price will not be on sale on the turnstiles under any circumstances.
On the Road:
Wolverhampton Wanderers v Barnsley Monday 1st January 2007 Kick Off 3pm.
Tickets:
Adults - £27.00
Senior Citizens: (Over 65) - £14.00
Juveniles (Under 17s) - £14.00
Student (with valid NUS card) - £14.00
Official Reds On The Road coaches will be making the trip to Molineux.
Price: £11
The coach leaves Oakwell at 11:30am on the day of the game.