The former Villa defender has been previewing their trip to the Etihad Stadium.
However, the former defender believes there are positives to take for the Midlands outfit and has actually provided a healthy verdict on their chances.
Dunne told the Villa site's Big Interview: "It's a tough game for Villa.
"They can take the positives that Man City haven't been doing great in the league of late - and they got beat heavily on Wednesday by Liverpool.
"Villa have everything to play for - they have to start winning now. It's going to be difficult but, as we all know in football, stranger things have happened. You have to be optimistic as a Villan."
Dunne, of course, played for both Manchester City and Villa and is certainly being 'optimistic' for the Midlands outfit.
But Remi Garde's men can take hope from their 0-0 draw at Villa Park. That day, there were plenty of positives for Aston Villa as they worked hard, defended well and managed to keep a clean sheet.
None of those positives were capitalised on going forward, however, while Manchester City will have home advantage this time around. Yet City did just lose 3-0 and don't look anywhere near as committed in the Premier League as they should be. Does that present a tiny window of opportunity for Aston Villa?
As Dunne says, it's about being hopeful, as slim as the odds really are...