Dunga was appointed in July 2014
Dunga has been sacked as Brazil manager, the Brazilian Football Confederation have confirmed.
The former international, who captained Selecao to 1994 World Cup success, was appointed manager in the aftermath of the 2014 edition of the tournament.
As hosts, Brazil were expected to win the competition, but they were humbled at the semi-final stage by eventual champions Germany.
However, since taking charge, Brazil’s fortunes have hardly improved.
The 52-year-old saw his team knocked out at the semi-final stage of the 2015 Copa America, losing to Paraguay on penalties, and he failed to lead Brazil out of their group at the Copa America Centenario.
They were held to a scoreless draw by Ecuador in their opening game, before thrashing Haiti 7-1. However, they were then defeated 1-0 by Peru, falling out of the competition at the group stage for the first time since 1987, in what proved to be Dunga’s last act in charge.