The former Coventry player, who was playing non-league football at Redditch just over three years ago, knows McLeish will spend the money new owner Carson Yeung will make available during the transfer window - up to £40million.
The former Scotland boss is currently drawing up a short-list of players and insists the accent will be on buying quality and not quantity.
But Dann believes that can only help City in their quest to secure Premier League football for another season, and he is ready to compete for his place.
Dann said: "We've met the new owners and the lads know they're willing to put a bit of money into things.
"That can only bode well for the players, the manager and the club. We can maybe bring in more players of better quality than we could have before.
"It will maybe push people for places and hopefully get us safe in the Premier League.
"It is a challenge for current players but I think the more competition there is for places, means it will bring out the best in in yourself.
"I'm all for it. I'm sure the rest of the players are too.
"The more players that come in means you have more chance of not being in the team, but you have to knuckle down and try your hardest to get in and stay in - and show you are good enough."