Brazil have offered Muricy Ramalho the chance to succeed Dunga as football coach of the five-time World champions but his club Fluminense say they won't release him from his contract.
Fluminense have Ramalho under contract until 2012.
He led Sao Paulo to the Brazilian championship in 2006, 2007 and 2008 as well as to the runners-up spot at the Copa Libertadores.
The new Brazil coach, who will be handed a deal up to the 2014 World Cup which is being staged in Brazil, is expected to be named on Monday with local media predicting Corinthians boss Mano Menezes as the other name in the frame.
Dunga was sacked after Brazil were knocked out of the World Cup by the Netherlands.