Dunga has been sacked as Brazil head coach after their shock exit from the Copa America, the BBC reports.
Dunga, who captained Brazil to World Cup success in 1994, was named national coach for a second time in 2014.
But the team were knocked out in the group stage of the Copa America for the first time since 1987 as they lost 1-0 to Peru in Massachusetts on Sunday.
Dunga, 52, had previously been in charge from 2006 to 2010, winning the Copa America in 2007.
Corinthians manager Tite is the favourite to succeed him.