The 50-year-old Dunga replaces Luiz Felipe Scolari, who resigned last week after Brazil failed to win the World Cup. Brazil was eliminated in the semifinals in a humiliating 7-1 loss to Germany.
The Brazilian federation confirmed the appointment Tuesday at its headquarters in suburban Rio de Janeiro.
Dunga was the captain of Brazil’s 1994 World Cup-winning team and coached the national team in the 2010 World Cup in South Africa. He was dismissed after Brazil lost 2-1 in the quarterfinals to the Netherlands.