The former Saturday Night Live comedian, 28, and Kim, 41, are said to have split last week after nine months of dating. The pair have reportedly agreed to to "just be friends" going forwards after difficulties of their demanding work schedules.
Pete has been in Australia filming upcoming film Wizards! for the last few months while Kim has been raising her four children she shares with ex-husband Kanye West in Los Angeles.
The long-distance relationship is believed to have taken its toll after their initial "spark" has "faded", according to a source close to Davidson.
The comedian is hoping to break the big screen in Wizards!, which also features Orlando Bloom and Naomi Scott in the David Michod-directed movie and is set for release next year. And it is thought that his former SNL colleagues are already pushing for him to get back in the dating scene.
The source told American outlet ET: "Pete is bummed things didn't work out with Kim, but he is focused on the future in terms of his career and personal life. Those close to him already want to set him up on dates."
On the breakdown of the relationship with Kim, the source added: "They had tons of chemistry, and still do, but she kind of wants to be single and date.
"Kim still adores Pete and will always be friends with him. She still thinks he's the nicest and sweetest guy in the world and there's no drama or anything weird between them now."
The pair's relationship began to blossom after they met on SNL last autumn, before they officially become an item in October following Kim and Kanye's divorce. In June, meanwhile, Kim revealed in an episode of The Kardashians how their love story came about.
"So, this is how it went down with me and Pete," the Hulu star began. "I did Saturday Night Live and then when we kissed in a scene it was just a vibe. I was like, 'Oh s***. Maybe I just need to try something different.
"But Pete does not come to my afterparty and everyone was at my afterparty. He is not giving me the time of day. So, a few days later I called the producer at SNL and was like, 'Hey do you have Pete’s number?' I text him."
The SKIMS mogul continued: "I wasn't even thinking, 'I am going to be in a relationship with him'. I was just thinking, 'Heard about this BDE, I need to get out there'. I was basically DTF (down to f***)."
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