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Former Wales international Davies is taking a year-long break from the game to go back-packing in Australia after admitting he needed to 'sort his head out' following an injury-plagued season.
He will be succeeded by British Lion candidate Easterby, in his sixth season at Stradey Park, who was a key part of Ireland's Triple Crown success as well as the Llanelli team that lifted the Celtic League title in May.
'This is a huge honour and I'm delighted to be chosen to lead a side that means so much to me, there's a lot of experience in the side which I'm hoping will make my life easier,' he said.
'We've got our work cut out this season with a tough European group and defending the Celtic League title but we've proven we're the best in the Celtic League and now we want to put recent Heineken Cup disappointments behind us. We've got a strong squad and I believe we can go all the way.'
Llanelli are in Pool 3 for next season's Heineken Cup alongside Glasgow, Northampton Saints and last season's Heineken Cup finalist's - Toulouse.
