The midfielder says Rovers will have an "outstanding" chance to return to the Premier League at the first attempt if the former Tottenham boss joins the Ewood Park club
The 65-year-old is keen for a return to management and has been heavily linked with the Championship club following the exit of Steve Kean in September.
Reports on Thursday suggested Redknapp would consider the Blackburn job if approached, and Dunn has urged global advisor Shebby Singh to consider the former Tottenham boss.
The veteran midfielder 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.
|'ARRY AT EWOOD|
|13/8||Harry Redknapp is 13/8 with PaddyPower to be next Blackburn Rovers manager|
"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."
In an exclusive interview with Goal.com on Thursday, ex-Rovers striker Kevin Gallacher slammed the club's lengthy process to appoint a new manager, which included a failed attempt to speak to Fulham first-team coach Billy McKinlay earlier this week.
"Waiting until the end of next month to appoint a new man would probably be too long," he said. "It is stupid to believe that everyone can carry on as normal in such circumstances.
"If you don’t have a manager then you are a ship without a captain. Until that is resolved, Rovers don't really know what direction they are heading in."
Blackburn, currently under the caretaker charge of Eric Black, ended a five-match winless run with a 1-0 victory over Sheffield Wednesday in midweek to move back into the Championship play-off places.