Dunn picked up the blow in the clash with Ipswich at Ewood Park and was given a pain-killing injection before the 3-1 defeat at Leeds.
Rovers have been in Dubai on a sunshine training break for the last few days but Dunn has been unable to train properly since collecting the injury.
And after losing ground on the other other relegation strugglers last weekend, Souness may be unwilling to risk Dunn in Saturday's must-win game.
Blackburn travel to Filbert Street two days before they take on Southampton in a period that will go a long way to determining their Premiership future.
To compound Dunn's agony, the knock ruled the 22-year-old out of the reckoning for a surprise call-up into Sven Goran Eriksson's squad for Wednesday's friendly against Italy.
It is the second time this season that Dunn has been ruled out of the England coach's plans after injury prevented him being considered for the friendly with Holland in January.
Dunn missed the Under-21 international at Bradford on Tuesday but he remains a certainty to play a leading role in the European Championships this Summer.