Brazil's Football Confederation (CBF) on Monday said it had accepted coach Luiz Felipe Scolari's offer to resign along with his backroom team.
Scolari made the offer Saturday after his side, already humbled 7-1 in their World Cup semi-final by eventual winners Germany, slumped 3-0 to Holland in the match for third place.
Outgoing CBF chairman Jose Maria Marin accepted the offer while thanking Scolari, 65,and his staff for taking the Brazilians to fourth place and also winning last year's Confederations Cup.
"Scolari and all of his technical commission deserve our respect and thanks. They were responsible for restoring the people's love of the Seleção, even if they did not reach their main objective," said Marin, who hands over to Marco Polo Del Nero next year.
He said Scolari, who led Brazil to the 2002 World Cup, and his colleagues had "contributed decisively" to the major upsurge in support for the team ahead of the World Cup.
"We saw the people dressed in green and yellow in the streets showing off the national flag with pride and showing off their passion for the national side for the first time in some while," said Marin in a statement on the CBF website.
As speculation mounts that former Corinthians boss Tite, 53, is the next in line for the post Marin said he would give a news conference at CBF headquarters in Rio on Thursday.
Scolari took the reins for the second time in November 2012 and the Confederations Cup success at Spain's expense in June last year suggested the Brazilians could be counted favorites for the World Cup on home soil.
But they were unconvincing even in topping their first phase group and only beat Chile on penalties in the second round.
Against Germany the five-times world champions were ultimately humiliated without injured starlet Neymar and the Dutch loss further eroded what credit Scolari had left.