The young midfielder, who celebrated his 21st birthday on Wednesday, has been a key player for the Saddlers since rejoining the club from Sparta Rotterdam in January 2017.
Born in Harold Wood, Dobson joined Arsenal as a youth player and captained their Under-18s. He signed for his boyhood club West Ham in July 2015 and helped the Hammers win the 2016 Under-21 Premier League Cup, beating Hull on penalties in the final.
He spent the entire 2016/17 season on loan with the Saddlers, scoring once in 26 appearances in all competitions before joining Dutch side Sparta Rotterdam for an undisclosed fee in July 2017, going on to feature on five occasions in the Eredivisie
Dobson emerged as one of Walsall's best performers in the second half of the 2017/18 season, starting 19 matches and scoring the goal that effectively secured our survival against Northampton. He has continued that impressive form into the current campaign, appearing in all 17 league fixtures.
Saddlers boss Dean Keates spoke tp club journalists ane welcomed the news, he said; "We are delighted George has committed his long-term future to the club. He was outstanding when I came in towards the end of last season and has kicked on again this campaign.
"He is a natural leader, a really dedicated professional and an integral part of the squad. He thoroughly deserves the responsibility of being captain and we are pleased to have him here for at least another three years."