Dawson, 20, has had two transfer requests rejected by Dale and Hill insists he will not be granted his wish to leave Spotland unless the club's valuation is met.
Middlesbrough are understood to have bid around £750,000 for the defender, but Rochdale are holding out for more.
Hill said: "I consider Craig to be like a son with respect to the way we try and nurture him and I understand he wants to leave and go to a Championship club.
"The fact is our valuation of Craig hasn't been met by any club and it will be Middlesbrough's loss when he goes and signs for another club that will meet Rochdale's valuation.
"Middlesbrough are trying to play hardball but I know Craig Dawson and I know his form will be good at the beginning of the season and I know in the space of ten to 15 games there will be more bids and bigger bids and Middlesbrough will miss out.
"Craig will remain focused on playing for Rochdale and the future will take care of itself. He is a Rochdale player and Craig will remain a Rochdale player until our valuation is met and everyone should realise that."
Source: Northern Echo
Source: Northern Echo