Speaking on The Lekker Rugby Pod, Dobson said that talks with Louw took place in Port Elizabeth and that the transfer had been agreed to in principle, effectively confirming earlier reports linking the Bok prop with a return to the Cape.
"Hy's 'n Kaapse kind," Dobson said. "We're certainly done for this season coming up - there'll be no new players for this season. That's an impossibility.
"I think the discussions are because 1 July was the start of the open season for players who come off their contracts in 2026."
Dobson reassured Bulls fans that Louw will remain in Pretoria for the coming 2025/26 campaign.
"They're safe for this season - but this time next year might be a different story," he added.
Louw, who has represented the Springboks at Test level and was part of the 2019 World Cup-winning squad, is seen as a natural replacement for Malherbe, whose rugby future remains uncertain due to a serious back injury.
A source close to the player told Rapport that a move to the Cape would also make personal sense for Louw. With family ties and a farm in the Cederberg region, relocating to Cape Town would bring him closer to home - but, according to the source, rugby remains the main driver behind the decision.
"Nothing is finalised yet," the source said. "He's a family man, but if he returns to the Cape, it'll be for rugby reasons."
Louw is contracted to the Bulls until June 2026.