Brazil's football confederation fired national coach Dunga on Tuesday in the wake of the team's elimination from the Copa America in the United States.
The confederation announced Dunga's dismissal in a brief statement, adding that the search for a new coach has begun.
Gilmar Rinaldi, the team's general manager, was also fired
Brazil failed to get past the group stage after drawing 0-0 with Ecuador, beating Haiti 7-1 and losing 1-0 to Peru on Sunday.
According to local media, the favorite to replace the 53-year-old Dunga is Adenor Leonardo Bacchi, known as Tite.
Tite is currently the coach of Brazilian league champion Corinthians.
Dunga was the captain of Brazil's 1994 World Cup-winning team, and previously coached the national team at the 2010 World Cup in South Africa. He was dismissed after Brazil lost 2-1 in the quarterfinals to the Netherlands.