Dunga who was hoping to become only the third person to lead his country to win the World Cup as a player and as a coach but his hopes was short-lived as the Dutch side made a stunning comeback to shatter Brazilian dreams of lifting the World Cup for the sixth time.
"We knew when I started that I would be here for four years." Dunga said after the loss. "It's sad, it's difficult, nobody prepares to lose."
Dunga had taken over the coaching responsibility after Brazil had crashed out in the quarter-finals of the 2006 World Cup.
The Brazilians were the on-charge till the end of the first 45 minutes with Robhino scoring the goal for them but the tables were turned after Brazil"s Felipe Melo knocked in an own goal and the Oranje went on to win 2-1 courtesy of a header from Wesley Sneijder.
"We are all extremely saddened. We didn't expect this and we hoped for a different result. We knew it was going to be a very delicate, very difficult game, but we weren't able to maintain the rhythm we had in the first half in the second half."