Brazil have sacked manager Mano Menezes following discussions about his future.
Menezes had been in charge of the five-time World Cup winners since 2010, replacing Dunga after Brazil's unsuccessful 2010 South Africa campaign.
He has been under intense pressure in recent months, following Brazil's dismal showing at the 2011 Copa America and at the London 2012 Olympic Games earlier this summer.
Although Brazil clinched the Superclassico das Americas on Wednesday, beating Argentina on penalties over two legs, even that victory was seen as disappointing for a Brazil side thought to possess far more quality than their opponents.
The hot favourite to replace Menezes is Luis Felipe Scolari, recently of Palmeiras, with Corinthians manager Tite also under consideration.
Scolari has managed Brazil before, leading them to World Cup victory in 2002.
It is thought an appointment will be made quickly, with Brazil hosting the Confederations Cup in just six months time, and the 2014 World Cup just a year later.