He also went on to rubbish reports of any Newcastle interest in England midfielder Dunn at any stage.
"It's absolute nonsense," Souness told the Lancashire Evening Telegraph.
"A year ago David's agent was trying to tout him around various clubs and I got a call from Gordon Milne, Newcastle's director of football, to say that they weren't interested in David and as far as I know that is still the case.
"My information is that a midfielder is not their priority at the moment.
"It wouldn't surprise me if there was interest in Lucas Neill because he's done very well for us.
"So I wouldn't blame anyone for fancying a move for him but he's one that I wouldn't want to let go."