The England international revealed he feels he made the right decision in snubbing Villa's overtures to join Blues.
"I did get feedback about Villa being interested," said Dunn.
"But I'm pleased with the decision I made. I'm a Birmingham player, not a Villa player, and happy with that.
"The most important thing for me is that we've had a good start to the season and are up in fourth place. Hopefully, we can carry it on."
The former Blackburn Rovers star is looking forward to the meeting with Villa and hopes that his side can handle the occasion after the fiery encounters of last season.
"I think it's going to be fast and furious, the tackles will be flying in. We've got to be careful we use our heads and not be stupid," added Dunn.
"The last thing we want is to go down to 10 men by being caught up too much in the occasion."
