Dalton put together a solid regular season for the Bengals last year and led them once again into the playoffs, but slipped to his third defeat in the post-season in as many years.
Jackson told the club's official website: "I haven't seen anything he can't do. He ran with the ball last year. Obviously he threw it all over the yard, and obviously he ran our football team.
"At the end of the day, that's the characteristics that we're looking for in a quarterback for our football team as well as our organisation."