Port Elizabeth, South Africa (Sports Network) - As expected, Dunga stepped down as manager of Brazil following his team's surprising 2-1 defeat in the quarterfinals of the FIFA World Cup against the Netherlands.
Dunga has been in charge of Brazil for the past four years, but it had been anticipated that he would step down regardless of how Brazil performed in South Africa.
The 46-year-old Dunga has been widely criticized in his native country for Brazil's style of play, as well as his selection of players for the World Cup, most notably the omission of Ronaldinho.
The boss captained Brazil's World Cup-winning 1994 team, but they have now been knocked out of the past two World Cups in the quarterfinal round.
"We are all extremely saddened. We didn't expect this and we hoped for a different result," Dunga said after the defeat to the Dutch.
"We knew it was going to be a very delicate, very difficult game, but we weren't able to maintain the rhythm we had in the first half in the second half.
"It's sad, it's difficult, nobody prepares to lose."