Brazil drew 0-0 with Ecuador and beat Haiti 7-1 but were beaten 1-0 by Peru and did not reach the knockout phase for the first time since 1987.
Pressure had mounted on Dunga following some mixed performances but he seemed relaxed after the Peru result.
Dunga, who was sacked from his first spell in charge of the Selecao after their last-eight exit at the 2010 World Cup, said at the time: “The president of the federation knows what we do and how we work. When you work for the Brazilian team, you know very well that the criticism will intensify when results do not come.
“In Brazil we want everything to change in two minutes, but in football you must be patient.”
The Brazilian federation said in a statement: “The CBF has taken the decision to dissolve the Brazilian national team’s technical committee. Team coordinator Gilmar Rinaldi and head coach Dunga, and his entire coaching team, will leave their positions. The CBF has now started the process of forming a new technical committee.”
Dunga, who led Brazil to World Cup glory in 1994 as a player, enjoyed a four-year spell in charge from 2006-2010 before he was dismissed following the team’s quarter-final defeat at the World Cup in South Africa.
The 52-year-old was then appointed manager for a second time after the 2014 World Cup, replacing Luiz Felipe Scolari.
This article was written by Mark Dobson, for theguardian.com on Tuesday 14th June 2016 19.48 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010