Reports surfaced earlier today that the 65-year-old had emerged as a primary target for the job, and Dunn feels that global advisor Shebby Singh could entice the former Spurs boss with the prospect of a potential promotion-winning campaign.
Dunn told Sky Sports News: "If Shebby could persuade Harry to have a serious think about coming to Ewood Park then I would imagine it would be one of the better decisions that Venky's have made over the last couple of years.
"We have got a very good squad and we still have an outstanding chance of getting promotion.
"I am sure if Harry was interested and the club could persuade him to come to the club, then hopefully we could get promotion. Promotion is great for any manager's cv."