A statement issued Sunday by the federation says a new coach will be chosen before the end of the month. The decision was widely expected after Brazil was beaten 2-1 by the Netherlands in the quarterfinals.
Dunga returned to Brazil with the team early Sunday and was met with applause and cheering by fans in his native Porto Alegre in southern Brazil.
BEST BET: Spain is a 9-5 favorite to win its first World Cup, followed by Germany, the Netherlands and Uruguay in odds posted by BetUS.com.
The Spaniards play Germany on Wednesday for a spot in the final, which they never have reached. Germany is a 2-1 choice, along with the Dutch. The Uruguayans are the longest shot at 10-1.
COACH'S CRITICISM: FIFA has not taken action against Gerardo Martino after the Paraguay coach's comments about the ruling body following his team's quarterfinals loss at the World Cup.
Martino said the referee wrongly disallowed Nelson Valdez 's 41st-minute goal in Saturday's 1-0 defeat to Spain. He made reference to FIFA's apologies to England and Mexico earlier in the tournament after officiating errors contributed to their elimination.
"FIFA will apologize tomorrow and everything will be fine," Martino said sarcastically.
But FIFA spokesman Pekka Odriozola said Sunday it has received no report or complaint about the comments.