The Republic of Ireland veteran has backed his fellow compatriot to hit top form once he settles into life at the club.
Ireland has started just two games for Villa since his summer move from Manchester City.
The player arrived as a £8million makeweight in the deal which took James Milner to the Eastlands giants.
Dunne is confident the midfielder will show his flexibility under new manager Gerard Houllier, who he believes will get the best out of the 24-year-old.
"I think Stephen could settle into any position once he's given a run in that place," said Dunne.