City boss Mark Hughes hopes to secure the defender to a new deal this week.
The Manchester Evening News says if Dunne puts pen to paper on a new long-term deal when he returns for pre-season training next week.
It will represent a massive U-turn for the player who said he had played his last game for the club.
Keegan's Top Target Set To Sign For Man City!
Last Updated : 30-Jun-2008 byFour weeks ago Dunne travelled to Tottenham for talks, but the deal was stopped because City sacked the manager.