Mano Menezes has been dismissed from his post as Brazil coach following a meeting with the CBF (Brazilian Football Federation) on Thursday.
The 50-year-old took charge of his nation in 2010 after a disappointing World Cup campaign under previous coach Dunga, and led the Selecao at both the 2011 Copa America and the 2012 Olympics.
However, his side crashed out of the Argentina-hosted tournament to Paraguay on penalties, before stumbling to a 2-1 loss to Mexico in London in the summer.
Menezes released a brief statement on his official Twitter account shortly after being relieved of his duties on Friday.
"I am no longer the coach of Brazil. I thank all those that worked with me on this special project, all the players, and to all the people that believe in our work. I wish success to Selecao ahead of our biggest dream, the 2014 World Cup."
Corinthians coach Tite, Santos boss Muricy Ramalho and Luiz Felipe Scolari, who masterminded Brazil`s 2002 World Cup victory, have been installed as the early favourites to succeed Menezes and continue the Selecao`s preparations ahead of World Cup 2014.