Dunga has been relieved of his duties at the head of the Brazil national team, after a disastrous showing at the Copa America Centenario.
The coach was summoned to the Brazilian Football Confederation (CBF) headquarters on Tuesday, along with coordinator Gilmar Rinaldi.
Following a brief meeting, the CBF meeting announced that Dunga, Rinaldi and the rest of their coaching team had been removed from their posts, having taken over from Luiz Felipe Scolari at the end of the 2014 World Cup.
“The Brazilian Football Confederation informs that it has decided this Tuesday to dissolve the coaching staff of the Brazilian national football team. Coordinator Gilmar Rinaldi, coach Dunga and all their will leave their positions,” the body confirmed in a statement.
“The decision was made in mutual agreement in this afternoon’s meeting and the CBF will now start its selection process for a new Brazil coaching staff.
“The CBF thanks the dedication, professionalism and commitment of the team in its work.”
A first-round elimination in the Copa sealed Dunga’s fate, while a disappointing start to World Cup qualifying also hurt the 1994 World Cup winner’s position.
Brazil won just one game in the United States, against Haiti, with a goalless draw against Ecuador and defeat to Peru rounding off the tournament for the Selecao.
Corinthians coach Tite has been widely touted for the position, although the statement made no mention of the highly-rated tactician.