FOXSports.com reports that the Indians have shown interest in Hudson, but need to clear salary in order to sign him. The Twins and other clubs are apparently in the mix as well.
"Orlando wants to be here because he has a lot of good friends over here," Dunn said. "I think he is a great player. Obviously, we could use him. But again, I realize it's a financial decision. It's a business. I'm trying to get him over here as much as anybody. I understand the Nationals are going to do what's best for them. From his point of view, this is where he wants to be."
General manager Mike Rizzo has talked to Hudson recently, but the two did not talk about dollar figures or length of a contract. Rizzo explained to Hudson how he would fit in with the team.
"It was all philosophy and big-picture stuff," Rizzo said. "You never talk finances with the player. It's always through his representatives. Yeah, they are positive talks. He is a great guy to talk to. He is a baseball guy. It's just two baseball guys talking."
The Nationals are not going to wait forever for Hudson to make a decision. If they don't sign Hudson, the Nationals will turn their attention to Adam Kennedy, who had a nice comeback season in 2009, hitting .289 with 11 home runs and 63 RBIs with the Athletics. The previous two years, he played in a combined 202 games, mostly due to injuries.
Kennedy, 34, is best known for his years with the Angels. In 2002, he was the American League Championship Series MVP after hitting three home runs against the Twins in Game 5.
There is also a slim chance that Orlando Cabrera will sign with the Nationals despite reports that they are one of three teams who have a chance to acquire his services.
Asked if he is confident that he will acquire a second baseman, Rizzo said: "If it's the right fit, we'll get him. ... We have internal options that we are looking at also. We want to better the club, so we want to better the club any way we can."
Bill Ladson is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.