The 48-year-old had served as the Iron's caretaker manager since March, following the dismissal of Graham Alexander.
✍️ Scunthorpe United are delighted to announce Nick Daws and Andy Dawson have signed their contracts to become the club's new First Team Manager and Assistant Manager respectively - https://t.co/k8d2EM3zAg pic.twitter.com/34XKaiEDJH— Scunthorpe United FC (@SUFCOfficial) May 25, 2018
Daws guided Scunthorpe to a fifth-place finish in League One and the playoff semi-finals last season, before they were eliminated by Rotherham United.
The coach's assistant Andy Dawson has also signed a permanent contract with the club.
Daws also had a stint as the Iron's caretaker manager between January 2016 and March of that year.