Mano Menezes is Brazil's new coach, succeeding Dunga, who was axed after the team were knocked out of the World Cup at the quarter-final stage.
The Brazilian Football Confederation had said earlier they had offered Corinthians coach Menezes the chance to lead Brazil to the 2014 World Cup, which is being played on home soil. Menezes coached Gremio from 2005 to 2007.
In his last year with the club, he took Gremio to the final of the Copa Libertadores where they were defeated by Argentina's Boca Juniors.
Soccer: Brazil replace Dunga
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