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Dunn is on the transfer list
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Blackburn Rovers have confirmed that David Dunn has turned down the offer of a new contract with the club.
The 23-year-old midfielder, who made his England debut against Portugal this season, has two years to run on his current deal.
But he has indicated he does not plan to re-sign with Rovers.
Rovers chief executive John Williams told to BBC Radio Lancashire: "This is not the end of the matter as far as we are concerned.
"We hope that David will change his mind in the future."
Dunn fell out with manager Graeme Souness during the summer after the boss criticised his attitude.
However, the Ewood Park boss has denied reports that Dunn was given an ultimatum of 'sign or leave' during talks at the weekend.
Souness told the Lancashire Evening Telegraph: "That's totally unfair. No-one has told him he has to leave at all.
It will be in everyone's interests if he starts next season here and does well for u
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"What we have done is ask him if he would be willing to sign a new contract and he's said 'no' he won't.
"So the reality is we've offered him an extension. I'm under no pressure to make a decision.
"I want him in the squad for next year and it will be in everyone's interests if he starts next season here and does well for us."
Souness said Dunn's decision to refuse a new deal was not based on money.
"There was no mention of the length of contract or money," said Souness.
"John Williams simply asked him if he was prepared to sign a new deal and he said 'no' and that was the end of it."