Daniels signed for Walsall in January and has become a consistent force in the Walsall defence.
The Montserrat-born 28-year-old left his native country after the Soufriere Hills eruption destroyed parts of the island.
Flynn said he had been a model professional since joining the club.
He said: “He’s an intelligent bloke and a very humble human being.
“He’s come through a lot of adversity in his younger life and I’m very, very proud of Donervon with the person he is.
“There’s nobody better I could have chosen to represent Walsall, on and off the pitch.
“He does things the right way and leads by example and deserves the captain’s berth.”