Dann was one of Blues' stand-out players last season, helping his teammates win the Carling Cup until surgery on his hamstring in January ruled him out for the rest of the season.
And following their relegation to the Championship, the Midlands side has seen an exodus of key players leaving.
And now it seems that the former Wallsall and Coventry City man is apparently the next to leave, with boss Chris Hughton confirming that the defender is likely to be leaving by the end of the summer transfer window.
However, the Blues have insisted that no official bid has been made.
Speaking to Sky Sports News, the former Newcastle boss said: "We are very conscious of the interest and speculation around Scott because he is a very, very good player, but until something happens he's very much a Birmingham City player and will remain so.
"There have been lots of enquiries, lots of interest in him, which is expected because he is a very good player, but no official bids yet."
The 24-year-old is reported to be a target of Premier League giants Arsenal and Liverpool, with the Emirates a more likely destination as they have the cash to spend from the sale of Cesc Fabregas and would like at least one new centre-back.