Brazil will name Fluminense manager Muricy Ramalho as the man to take over Dunga's World Cup flops.
The 54-year-old has agreed to take the job after meeting Ricardo Teixeira, the the head of the country's FA, in Rio de Janeiro on Friday.
An agreement with Fluminense must be reached before he can be confirmed in the post. He is under contract till the end of the year and the Rio side hope he can stay in post till the end of the Brazilian season in December.
Ramalho is virtually unknown outside South America, but he is highly regarded in Brazil after leading former side Sao Paulo to the league title three times between 2006 and 2008.
After going out of the World Cup at the quarter-final stage in both 2006 and this summer, the new man is under huge pressure to deliver victory when the tournament is held on home soil in four years time.
There was a clamour to appoint Luiz Felipe Scolari following Dunga's dismissal last month, but the former Chelsea boss ruled himself out of the running.
'Big Phil', who led Brazil to World Cup glory in 2002, had agreed to take over Sao Paulo-based side Palmeiras before this summer finals, though he has indicated that leading any team at Brazil 2014 would be a dream swansong to his career.
While Ramalho's appointment will be a surprise to some, there was no bigger shock than when Dunga was handed the job four years ago despite having no previous experience in management.
Fellow rookie Leonardo had been tipped for the job this time around after one rather disappointing season in charge of AC Milan, but the Brazilian FA have this time opted for experience.
Ramalho took his first job in management with Mexican side Puebla, for whom he used to play wingback after an average career with hometown club Sao Paulo.
He has since taken several jobs in the typically transient domestic circuit in Brazil.
Reports in South America this week had predicted that Corinthians boss Mano Menezes would get international football's top job, but days after his side were toppled by Ramalho at the head of the Brazilian league, so was his dream.