Dawson, who has been played a key role in the victories against Burnley and Bournemouth, has extended his contract by three more years.
He follows Hal Robson-Kanu, who also signed new terms with the club and the defender commented on his new deal on the club's website.
"I've always felt very settled here and I'm delighted to have reached this agreement", Dawson said.
"I've watched the club come through a challenging spell and like to feel I have played my part in helping us improve, step by step.I try to be consistent and play my part for the team", he added.