City skipper Dunne is out of contract at the end of next season and KK has a high regard for the player.
Despite months of talks with his advisers, no agreement has been reached and the 28-year-old is thought to be interested in a move to Tyneside as his contract winds down.
Eriksson: "I'm quite sure that you will see Richard Dunne playing for Manchester City next season, and the season after.
"But these are busy times and I don't think it will be resolved within the next couple of weeks.
"I think it's more of a question for the end of the season."