The Blues captain is expected to sign a new contract at Eastlands, despite Harry Redknapp's interest.
City have offered the 28-year-old a contract which would almost double his £28,000-a-week salary - although he could have earned more at Pompey.
But Portsmouth chief executive Peter Storrie has now conceded that Dunne will not be moving south.
Storrie said: "We're not expecting anything to happen. It looks like he's going to stay at City."
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david john nixon (01/07/2008 at 09:10)