Reports in Brazil have suggested that former captain Dunga is the "frontrunner" to replace Luiz Felipe Scolari.
Scolari parted company with Brazil after his team were beaten heavily by Germany and the Netherlands in the latter stages of the World Cup, but it appears as though the general manager for Brazil's national teams, Gilmar Rinaldi, could have selected the next person for the job.
A Brazilian source is quoted as saying: "Dunga is the front runner in the list and things are moving forward satisfactorily.
"There were important meetings that took place in Sao Paulo, and Gilmar is fine-tuning details already."
Dunga has previously coached Brazil between 2006 and 2010, where he won the Copa America and Confederations Cup.