The former national team captain, was summoned to the Brazilian Football Confederation (CBF) on Tuesday, with coordinator Gilmar Rinaldi.
At the meeting, Dunga, Rinaldi and the rest of his coaching team were fired.
“The Brazilian Football Confederation informs that it has decided this Tuesday to dissolve the coaching staff of the Brazilian national football team. Coordinator Gilmar Rinaldi, coach Dunga and all their will leave their positions,” the body confirmed in a statement.
“The decision was made in mutual agreement in this afternoon’s meeting and the CBF will now start its selection process for a new Brazil coaching staff.
“The CBF thanks the dedication, professionalism and commitment of the team in its work.”
Dunga replaced Luiz Felipe Scolari after the 2014 World Cup.