Found this dagger somewhere and I'm unable to drop it since is quest item, searched online eveywhere for information to no avail, any ideas here?.
Thanx.

IRC it has something to do with the mastery of alteration. I could be wrong though, plus if you have a house with a display you can put it in there.

It's used in a quest from the Mage's College when you reach 90 in Conjuration.

I was able to get rid of it by putting it in a weapon rack, so try that or a display plaque.