Dunga will lead Brazil's bid for Olympic gold in football for a second time after being confirmed as coach Alexandre Gallo's replacement.
The current Selecao boss combined the senior job and Olympic duties in 2008, but they could only secure a bronze in Beijing.
Mano Menezes led Brazil to the final in London three years ago, with a stellar squad including the likes of Neymar, Thiago Silva and Oscar – but they lost the gold medal match to Mexico.
Gallo had been set to combine his role as Brazil's Under-20 coach with a role at next year's Rio games, which will likely see the hosts set as overwhelming favourites on home soil.
Former Santos and Internacional boss Gallo's place in the national set-up had been under threat since leading Brazil's youth side to fourth place at the South American Youth Football Championship earlier this year.
Dunga returned to the senior side in July last year after Brazi's ultimately disastrous World Cup at home and has won all eight of his fixtures since reprising the role.
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