Brazil boss Dunga expects Ronaldinho to join Milan this summer as that is the forward's preferred destination.
Ronaldinho has been told he is surplus to requirements at Camp Nou with Milan and Manchester City confirming their interest in the talented playmaker.
Vice president Adriano Galliani claimed the World Cup winner had rejected an offer to join City, and now Dunga believes the Rossoneri are in pole position to land the player.
"Ronaldinho wants to go to Milan," the Brazil coach told Gazzetta dello Sport.
"And it is the players who determine transfers. The Rossonero club has all the good cards in their hand."
Questions have been raised of Ronaldinho's fitness after he appeared to have gained weight while recovering from a thigh injury in Brazil last month.
But Dunga believes reports of health problems are exaggerated, and that Ronaldinho will be fit in time for this summer's Olympics.
"The stories are exaggerated. Ronaldinho is only a few kilos overweight," Dunga added.
"He'll slim down quickly and he will be a star of the Olympics."

Latest Sky Sports News Report
Hull 2-1 Stoke - Pulis
Hull 2-1 Stoke - Bullard
Tottenham v Sunderland - 2nd Half
Blackburn v Portsmouth - 1st Half
Man City v Burnley - 1st Half
Blackburn v Portsmouth - 2nd Half
Aston Villa v Bolton - 2nd Half
| Time | Fixture |
|---|---|
| Sunday 8th November | |
| Barclays Premier League | |
| 13:30 | Hull vs Stoke |
| 15:00 | West Ham vs Everton |
| 15:00 | Wigan vs Fulham |
| 16:00 | Chelsea vs Man Utd |
| Monday 9th November | |
| Barclays Premier League | |
| 20:00 | Liverpool vs Birmingham |
| Saturday 21st November | |
| Barclays Premier League | |
| 12:45 | Liverpool vs Man City |
| 15:00 | Birmingham vs Fulham |
| 15:00 | Burnley vs Aston Villa |
| 15:00 | Chelsea vs Wolverhampton |
| 15:00 | Hull vs West Ham |
| 15:00 | Sunderland vs Arsenal |
| 17:30 | Man Utd vs Everton |
| Sunday 22nd November | |
| Barclays Premier League | |
| 13:30 | Bolton vs Blackburn |
| 15:00 | Tottenham vs Wigan |
| 16:00 | Stoke vs Portsmouth |
| Wednesday 25th November | |
| Barclays Premier League | |
| 19:45 | Hull vs Everton |
| 20:00 | Fulham vs Blackburn |
| Saturday 28th November | |
| Barclays Premier League | |
| 15:00 | Blackburn vs Stoke |
| 15:00 | Fulham vs Bolton |
| 15:00 | Man City vs Hull |
| Time | Result |
|---|---|
| Saturday 7th November | |
| Barclays Premier League | |
| Wolverhampton 1 - 4 Arsenal | |
| Man City 3 - 3 Burnley | |
| Tottenham 2 - 0 Sunderland | |
| Blackburn 3 - 1 Portsmouth | |
| Aston Villa 5 - 1 Bolton | |
| Wednesday 4th November | |
| Barclays Premier League | |
| West Ham 2 - 1 Aston Villa | |
| Sunday 1st November | |
| Barclays Premier League | |
| Birmingham 0 - 0 Man City | |
| Saturday 31st October | |
| Barclays Premier League | |
| Man Utd 2 - 0 Blackburn | |
| Sunderland 2 - 2 West Ham | |
| Portsmouth 4 - 0 Wigan | |
| Bolton 0 - 4 Chelsea | |
| Stoke 2 - 2 Wolverhampton | |
| Fulham 3 - 1 Liverpool | |
| Burnley 2 - 0 Hull | |
| Everton 1 - 1 Aston Villa | |
| Arsenal 3 - 0 Tottenham | |
| Sunday 25th October | |
| Barclays Premier League | |
| West Ham 2 - 2 Arsenal | |
| Man City 2 - 2 Fulham | |
| Liverpool 2 - 0 Man Utd | |
| Bolton 3 - 2 Everton | |
Join skysports.com football editor Mark Buckingham from 6pm to debate the outcome of Chelsea v Man Utd.
Sunderland fan Lucinda Gittins was strutting her stuff in the Soccer AM studios this week.
Paul Merson fears for Phil Brown - and says Hull couldn't be facing a worse game than home to Stoke.
Hull came from behind to beat Stoke 2-1 at the KC Stadium to ease the pressure on Phil Brown.
Follow all of Sunday's action via skysports.com's Score Centre, including Chelsea versus Manchester United.
League One leaders Leeds United will travel to Kettering whilst Norwich will face Carlisle or Morecambe.
Sir Alex Ferguson admits that he has had offers to manage abroad but is adamant that 'you don't leave Manchester United'.
Patrice Evra has admitted that he wants to beat Chelsea more than any other team in the Premier League.