Dawson was handed a 12-month player/coach contract at Glanford Park following his release last month from Hull, where he had also been pencilled in for a coaching role.
But the 34-year-old left-back, who made over 300 appearances in his first spell at Scunthorpe before joining Hull in 2003, said he still has plenty to offer on the field after his chances were limited at the KC Stadium last season.
"First and foremost I'm coming in as a player and I'll concentrate 110 per cent on playing," he told BBC Radio Humberside.
"I explained to Brian Laws what had been said at Hull and he said I could play and take the reserves at Scunthorpe, which is a fantastic opportunity.
"I've just finished by B Licence and I'm looking to do my A licence next summer."
Dawson, who won four promotions with Hull, added: "There was a burning desire inside me to carry on playing, especially towards the end of the season when it was squeaky-bum time.
"When you're a player, they're the sorts of games you want to be involved in - they're certainly the ones I want to be involved in.
"When the option came up to go to Scunthorpe, play and do a bit of coaching as well, it means I can get the best of both worlds."
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