"I am immensely happy - thank you for your confidence in me," said Dunga.
Dunga is now hailed as the new replacement coach for Luis Felipe Scolari, after the 2014 World Cup coach quit his job because of the heart breaking losses in the final parts of the tournament.
Dunga has won the 1994 World Cup final as a captain. He is now appointed by Brazil's Football Confederation.
"The fans are very down right now but they are right behind the team," Dunga said in the interview. But his tone was serious, at the same time: "I am not here to sell a dream, we must get down to work."
CBF president Jose Maria Marin said: "He was world champion, captain of a world champion side."
"He has what it takes to lead the Brazil team. The numbers show he absolutely has the ability to take charge," he continued.
Scolari was remembered to be the winning captain of Brazil 2003's World Cup final, too.
In an interview during Brazil's 7-1 loss to Germany in the semi- finals, Dunga said, "A World Cup is hard work for a national team and a party for everyone else on the outside."
"That means you have to make a very clear distinction between the two because it's a huge challenge.
"There'll be arguments, but just because you lose doesn't mean to say that everything's been a mess. There are a lot of good things that need to be built on."
Brazil's style was said to be outdated, and even talisman Neymar had said that they are lagging behind the Europeans in terms of their football.
Dunga said in the same interview, "Today's system, with everyone marking together and dropping back in midfield to close down the space and then attacking at pace when they win the ball back, is one that brings results. Generally speaking the game's become more dynamic now."
With reports from: FIFA.com