Dunga has been sacked as head coach of Brazil following their group-stage exit from the Copa America.
The Brazil Football Confederation (CBF) confirmed on Tuesday that the 52-year-old had been relieved of his duties after less than two years in the job.
Brazil were dumped out of the Copa America for the first time since 1987 after suffering a 1-0 defeat to Peru in Massachusetts on Sunday.
Dunga, who captained Brazil to the 1994 World Cup in the USA, was in his second spell as head coach, having spent four years in charge between 2006 and 2010.
He returned to the role in July 2014, replacing Luiz Felipe Scolari, and inherited a Brazil team that had been defeated 7-1 by Germany on home soil in the World Cup semi-finals.
His second stint in charge failed to deliver the success desired by the CBF, losing to Paraguay in the quarter-finals of the 2015 Copa America and then failing to advance past the group stage of this year’s competition.