Brazil sacked coach Dunga on Tuesday after the Selecao failed to get out of the group stage at the Copa America Centenario.
Peru eliminated Brazil with a 1-0 result on Sunday thanks to a controversial goal that appeared to come off the hand of striker Raul Ruidiaz.
But the manner of the defeat was not enough for Dunga to retain his job, as the Brazilian Football Confederation (CBF) relieved him of his duties after he returned from the United States on Tuesday.
Sources close to Brazilian club Corinthians told ESPN Brasil that the CBF has already approached their manager Tite to replace Dunga.
A CBF statement said: "CBF announced on Tuesday that decided dissolving the technical staff of the Brazilian national team. The teams coordinator, Gilmar Rinaldi, coach Dunga and his entire staff leave their positions."