Blackburn resigned to losing midfield star Dunn
Rovers chief executive John Williams held talks with the England player regarding the possibility of extending his current deal, which still has two years left to run but the 23-year-old declined the offer.
Dunn fell out with boss Graeme Souness this season and the manager said he was willing to let the midfielder go if a suitable bid came in. But Souness has denied reports Dunn was given a 'sign or leave' ultimatum during talks at the weekend.