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Brazil coach Dunga made it clear he would not continue in the job after his side lost 2-1 to Netherlands in their World Cup quarter-final on Friday.
Asked about his future, he told reporters: "We knew when I started that I would be here for four years."
"It's sad, it's difficult, nobody prepares to lose."
Dunga replaced Carlos Alberto Parreira in July 2006, immediately after the last World Cup.
A hard-tackling midfielder in his playing days, Dunga captained the Brazil team that won the 1994 World Cup and finished runners-up four years later.
He was a surprising choice, having had no previous coaching experience, and his appointment was a response to a perceived lack of discipline and commitment among the players.
His first decision was to drop stalwarts such as Cafu, Ronaldo and Roberto Carlos and he later lost patience with Ronaldinho, leaving him out of the squad for South Africa.
Dunga's team won the Copa America in 2007 and the Confederations Cup in 2009, also finishing top of the South American World Cup qualifying group, but many fans and pundits did not like their physical, counter-attacking style.
