(CNN) -- Brazil coach Dunga has been sacked after their shock World Cup quarterfinal exit to the Netherlands.
His side were beaten 2-1 on Friday after taking a first half lead and looking set to secure a place in the last four.
"The cycle of work started in 2006 and which culminated with the elimination of Brazil in the World Cup in South Africa is finished," said a statement on the official website of Brazilian football Confederation (CBF).
"The CBF announces the dismissal of the technical commission of the Brazilian team. The new commission will be announced at the end of July."
Dunga, 46, who skippered Brazil to the 1994 World Cup, had been national team coach since 2006 and led them to a Copa America triumph the following year.
Despite his successful record, they also topped South American qualifying for the World Cup, Dunga had come under criticism at home for his side's alleged lack of attacking flair.
And after the Port Elizabeth defeat to the Dutch, he indicated he would be standing down.
However, on his arrival home on Sunday, Dunga did not rule out staying in the job.
"I am going to rest before meeting, in one or two weeks' time, the president of the CBF, Ricardo Teixeira to talk about it (extending his stay in charge)," Dunga told a news conference, but his optimism was misplaced.
With Brazil hosting the World Cup in 2014, Dunga's successor is obviously key and local media have already made Luiz Felipe Scolari the favorite.
Scolari guided Brazil to their fifth World Cup triumph in 2002, but was less successful in his spell with English Premier League Chelsea where he was sacked.
He is currently coaching at Brazilian club side Palmeiras.
The Brazilian team received a hostile reception on their return home, with much of the fans' anger directed at Felipe Melo, who scored an own goal against the Dutch and was also sent off.