Brazil named Dunga as their manager for the second time on Tuesday, two weeks after they were hammered 7-1 by Germany in the World Cup semi-finals which led to the resignation of former coach Luiz Felipe Scolari.
Chelsea have agreed a compensation package with sacked Brazilian manager Luiz Felipe Scolari and his assistants, the Premier League club said on Tuesday.
Portugal's Brazilian-born coach Luiz Felipe Scolari has had his contract extended until 2008.
Dutchman Guus Hiddink was named as Premier League champions Chelsea's interim manager for a second time on Saturday following the sacking of Jose Mourinho, the club said in a statement.
Rediff.com brings you the best quotes of the day from Brazil!
Brazil have sacked manager Luiz Felipe Scolari just hours after the end of a home World Cup in which they suffered two of their worst defeats in the tournament's history, one of Brazil's leading newspapers reported on Monday.
Brazil will be without captain Thiago Silva for their World Cup semi-final against Germany after FIFA on Monday rejected an appeal against his yellow card, denting home hopes of lifting the trophy for the sixth time.
Brazil manager Luiz Felipe Scolari said his future had yet to be decided and urged optimism after the hosts crashed to another heavy defeat in their final match of the World Cup on Saturday.
Photos of the third-place playoff match between Brazil and Netherlands
Brazil play Colombia in Fortaleza in Friday's afternoon kick-off and, with the weight of expectation upon them, there are concerns about whether a team that have failed to sparkle so far can cope with the pressure.
Former captain and coach Dunga hailed the appointment of Luiz Felipe Scolari as coach saying he will take Brazil to great success.
Brazil coach Luiz Felipe Scolari said Sunday's 3-0 Confederations Cup final victory over World and European champions Spain showed his team were taking huge strides along the road towards winning the World Cup at home next year.
Now that the World Cup is over, we take a look at the most memorable moments in the month-long football extravaganza.
From Luis Suarez's bite to commenting on Brazil's big loss in the semi-final, everyone had their two-bit to share. Here is a selection of the best quotes from the 2014 World Cup in Brazil.
Brazil rode a wave of emotion, patriotism and prayer to reach the World Cup semi-finals but Tuesday was the day when the weight of expectation caught up with them.
Brazil will play Germany next week in what the hosts' players are calling the final before the final and manager Luiz Felipe Scolari is facing selection dilemmas four days ahead of the semi-final in Belo Horizonte.
Brazil striker Neymar's World Cup is over and the loss of their talisman and top goalscorer to injury leaves manager Luiz Felipe Scolari with a big headache ahead of their semi-final against Germany on Tuesday.
Ronaldinho and Pato have been recalled to Brazil's squad for Saturday's friendly away to Bolivia in aid of the family of a young fan killed by a flare at a Libertadores Cup match last month.
Brazil boss Luiz Felipe Scolari said his team were "three steps from heaven" after beating Chile on penalties to reach the World Cup quarter-finals on Saturday.
Now facing Chile in the first game of the tournament's knockout round, Brazil will be encouraged by recent history. They easily knocked out Chile at the same stage in the last two World Cups "La Roja" (The Red) featured in, 1998 and 2010.
Hosts Brazil will look to clinch their berth in the last 16 of the World Cup as they host already-eliminated Cameroon in their final Group A match at the National Stadium in Brasilia.
It's a World Cup reporter's dream. You board a plane and who's on the flight with you? Luiz Felipe Scolari, the coach of Brazil's national soccer team. Or at least that's what Mario Sergio Conti, one of Brazil's best-known syndicated columnists, thought on Wednesday on a flight from Rio de Janeiro to Sao Paulo.
The thought of Neymar tearing your team into pieces might be enough to give some coach's nightmares, but Croatia's Niko Kovac isn't losing any sleep over the threat posed by the Brazilian phenom ahead of Thursday's World Cup opener.
With a passionate crowd behind them, a savvy coach and a settled team enjoying a sparkling run of form Brazil are hot favourites to lift a record sixth World Cup this July.
With one month to go until the start of the 2014 soccer World Cup in Brazil on June 12, we take a look at how things are shaping up on the playing side for 10 of the leading nations.
Luiz Felipe Scolari ran into his first controversy only hours after taking over as Brazil coach on Thursday by saying that players who could not handle pressure should "work for the Banco do Brasil".
World Cup winners Ronaldinho and Kaka were both left out of the Brazil's Confederations Cup squad on Tuesday as coach Luiz Felipe Scolari opted for youth ahead of experience.
Fred scored a last-minute equaliser to give World Cup hosts Brazil a 1-1 draw against Russia in a football friendly on Monday as the South Americans remained winless since the return of coach Luiz Felipe Scolari.
Images from the football friendly played between Italy and Brazil in Geneva on Thursday.
Luiz Felipe Scolari got an indication of the work ahead of him to turn Brazil into World Cup winners when his second stint in charge began with a 2-1 defeat by England at Wembley on Wednesday.
Brazil coach Luiz Felipe Scolari confirmed goalkeeper Julio Cesar will definitely be going to the World Cup next year but said there are still four or five places up for grabs in his 23-man squad.
Luiz Felipe Scolari took over as the coach of 2014 World Cup hosts Brazil on Thursday, returning for a second stint to lead his country's bid to win a sixth world title on home soil in little more than 18 months' time.
Luiz Felipe Scolari is set to be named as the new coach of 2014 World Cup hosts Brazil on Thursday, a source close to Brazilian Football Confederation (CBF) said.
Five-times world champions Brazil extended their unimpressive run of results on Sunday when they scrambled a 2-2 draw with England in a friendly at the rebuilt and newly re-opened Maracana.
Brazil were booed by their own fans after stumbling to a 2-2 draw with Chile in their first friendly at a 2014 World Cup stadium on Wednesday.
Since the billionaire from Russia took control of the London club in 2003, Claudio Ranieri, Jose Mourinho, Avram Grant, Luiz Felipe Scolari, Guus Hiddink and Carlo Ancelotti have all left Stamford Bridge after failing to reach the Holy Grail.
Luiz Felipe Scolari's second coming as Brazil manager ended in a defeat as goals from Wayne Rooney and Frank Lampard earned a vibrant England side a 2-1 win at Wembley on Wednesday, their first over the south Americans for 23 years.
Luiz Felipe Scolari is refusing to accept that he has lost his magic touch and believes he merits a second stint as Brazil coach, despite criticism of his recent coaching record.
Ronaldinho has been told by coach Luiz Felipe Scolari that he must justify his surprise inclusion for Brazil after a one-year absence.
Brazil coach Luiz Felipe Scolari knows his 23-man squadfor the World Cup finals and has chosen Thiago Silva, David Luiz, Julio Cesar and Fred to act as captains, he said on Thursday.