Former Brazil captain Dunga was appointed as the five-time World Cup winners' new coach on Monday, the Brazilian Football Confederation (CBF) said.
Dunga, who skippered Brazil to victory at the 1994 World Cup, replaces Carlos Alberto Parreira who resigned last week following the South Americans' disappointing campaign at this year's finals in Germany.
The 42-year-old has been entrusted with leading Brazil to the 2010 World Cup in South Africa and possibly beyond, said CBF President Ricardo Teixeira.
"The appointment of Dunga satisfies the desire of Brazilian fans who want to see a vibrant coach," Teixeira said.
Dunga's first match in charge will be a friendly against Norway in Oslo on August 16.
While Teixeira said Dunga's appointment was calculated to inspire, the decision to give the former defensive midfielder the job could signal the return of a more disciplined approach to the Brazilian national team.
Parreira's relaxed approach was blamed as one of the reasons for Brazil's failure to advance beyond the quarter-finals at the World Cup, where they were beaten 1-0 in the last eight by France.
As a player Dunga was famously intolerant of indiscipline and almost came to blows with striker Bebeto during a first-round match against Morocco at the 1998 World Cup, where he also captained his country.
Nicknamed "Dopey" after the character in Snow White and the Seven Dwarfs, Dunga's relaxed demeanor off the pitch masked a steely determination on it.
After spending the early years of his career in Brazilian football with Internacional, Corinthians, Santos and Vasco da Gama, Dunga moved to Italy in 1987 after signing for Pisa.
Spells at Fiorentina and Pescara were followed by a stint with VfB Stuttgart in the Bundesliga before he finished his career in Japan with J-League side Jubilo Iwata.
A veteran of three World Cups -- he also played at the 1990 finals in Italy -- Dunga also won a silver medal at the 1984 Olympic Games in Los Angeles during an international career that spanned 91 caps and six goals.
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