Brazil are reportedly set to announce Dunga as their new manager this week.
The South Americans are currently without a head coach following the resignation of Luiz Felipe Scolari last week.
Scolari stepped down following the conclusion of the World Cup, in which the Selacao suffered a humiliating 7-1 defeat against Germany in the semi-finals.
According to the Daily Mail, the Brazilian Football Federation will name Dunga as the new manager of the national team on Tuesday.
Dunga was previously in charge of Brazil from 2006 to 2010 but was sacked following their World Cup quarter-final exit against the Netherlands in South Africa.
During his playing career, Dunga won 91 caps for Brazil and captained his country to victory in the 1994 World Cup.