The Owls academy product has made big strides at Hillsborough, having regularly impressed at Under-18 level and now in the Development Squad.
Dawson spent time on loan with Plymouth in 2013/14 and played 17 games on loan for Alfreton in 2014/15.
His progress at Hillsborough has seen Dawson earn international recognition with England at Under-18 and Under-19 level.
Dawson enjoyed a short term loan spell with League 2 side Wycombe Wanderers in August 2016.
He made two appearances for the Adams Park club, making his senior league bow in the process.