The Dutch outfit has signed Davidson with the option of buying him permanently at the conclusion of the loan. Davidson is contracted at Town until mid-2018.

The 25-year-old, who has previous experience in the Eredivisie with Heracles, moves with a view to first-team football, having not featured in one of Huddersfield's opening four matchday squads this term.

Davidson made 30 appearances in all competitions for the Terriers last term, after joining the club following a disappointing spell at West Bromwich.

“When I first found out that Groningen were interested, it was something that really stood out to me because I really enjoyed my time in the Eredivisie when I was at Heracles," Davidson said.

"When a team as big as Groningen comes along it was something very interesting for myself. To be back in Holland I’m very happy to be back here."

Davidson flew out of England for the Netherlands early on Thursday morning to complete the deal which will boost his Socceroos aspirations having missed coach Ange Postecoglou's 23-man squad this week for World Cup qualifiers against Iraq and UAE.

He hasn't been selected in a Socceroos squad this year, with Postecoglou preferring Brad Smith to start in four of the past five games at left-back, along with teenager Alex Gersbach.

The Melbourne-born defender hasn't played for Australia since the 4-0 World Cup qualifying win away to Bangladesh on November 17, when he was a substitute for James Meredith.

He had been Postecoglou's preferred left-back at the triumphant 2015 Asian Cup, selected ahead of Aziz Behich for the knockout matches.

Huddersfield boss David Wagner said the loan was a good option for all parties.

“This is a good move for everyone," Wagner told the club website. "Jason is a senior player and is obviously keen to play regular football and that is not something we can offer here at the moment.

“Jason has a profile in the Netherlands from his time playing in the country and we all wish him the best of luck.” 

Groningen finished seventh in the Eredivisie last term and are coached by ex-PSV Eindhoven assistant and one-time Netherlands international Ernest Faber.

Faber's side has started the 2016-17 Eredivisie with back-to-back defeats without scoring a goal, including a hefty opening day 5-0 loss at home to Feyenoord, to sit bottom of the table.

Davidson will wear the number two shirt for Groningen and will battle 23-year-old Yoell van Nieff to be the first choice left-back.

It is expected he'll be available for Sunday's league clash with Twente (8.30pm AEST).