The 19-year-old Spaniard has extended his loan spell from Liverpool until January after a successful start to his stint with City.
"Daniel is a very, very good player," Dawson told the Hull Daily Mail.
"He's got the makings of a Premier League defender, without a shadow of doubt.
"He's got a lot of quality and in time I'm sure he'll go back to Liverpool and cement his place there. It would be nice to keep him here for the season and I think that would be good for him as well.
"His first few performances have been fantastic and I'm sure he's learning all the time by playing regular football."