The Sun says the talented 16-year-old became the youngest first-team player in Scunthorpe's history in August.
He is the son of former Iron left-back Andy and a nephew of ex-Tottenham defender Michael Dawson.
Dawson has made just one appearance this season, coming off the bench in the 1-0 Carabao Cup defeat at the hands of Derby.
And Arsenal are keen to snap up Dawson in a surprise deal.
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