The actress recently bowed out from her role as Mandy Richardson after almost a year back in the part.
Dunn told OK Extra of her decision to leave: "Hollyoaks is a huge part of my life. But I felt I'd taken the character as far as possible and now I want to try my hand at different things.
"I've just been for an exciting audition, but I don't want to tempt fate by talking about it. If it comes off, it'll be amazing!"
Speaking further about leaving Hollyoaks, she continued: "When I was asked to come back on the show, I felt Mandy had a much darker side to her. The writers gave me some fantastic storylines with Warren Fox and I really had something to get my teeth into.
"But it's time to move on. This is my third time returning to the show. In 2008, I came back for a six-month stint and I originally played Mandy for 10 years before taking a break. I'll always come back if the storylines are strong enough, but at the moment I want to pursue other things."
Hollyoaks fans recently saw Mandy reunite with ex-husband Tony Hutchinson (Nick Pickard), but events later took an unexpected turn when she changed her mind - dumping her on-off partner by letter and leaving the village.
> Hollyoaks star Jamie Lomas to leave soap
> Read more Hollyoaks news and spoilers
Rewatch a Hollyoaks Mandy and Warren scene below: