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Luis Felipe Scolari says he would love to coach Brazil again, but admits that it would be unlikely.
The 61-year-old tactician led Brazil to World Cup success in 2002 and has been linked with the vacant post after Dunga's contract was not renewed.
Former Chelsea boss Scolari has verbally agreed to take the helm at Palmeiras for two years, and therefore admits that while he will not rule out a return, he says he is a man of his word.
In quotes reported on Globoesporte, he said: "It's a matter of pride, after so much time away from Brazil, that people still like me, and think of me as possible Brazil coach.
"It is natural that I can never say that I will not work in the Brazil national team. But at the moment, I have a verbal agreement with Palmeiras.
"That said, I'm saying that I could be working for the national team in 2014 in my country, or for another selection."
Brazil were defeated 2-1 by Holland in the quarter-finals of this year's World Cup in South Africa, despite being in a strong position in the game at half-time.
Former midfielder and AC Milan coach Leonardo is another name in the frame for the vacant job, and speculation has mounted that he could take the reins until 2012, making way for Scolari to lead Brazil to the World Cup on home soil two years later.
Bryan Swanson, Chief News Reporter for Sky Sports News, reflects on the FIFA press conference ahead of Friday's World Cup draw in Costa do Sauipe, Brazil.
Sky Sports News' Nick Collins reports from Brazil ahead of Friday's draw for the 2014 World Cup.
England will learn their World Cup fate on Friday - and Sky Sports will bring you live coverage of the draw, both on television and online.
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Ronaldinho has insisted he has no plans to leave Brazil before 2014 after being linked with a move to Blackburn Rovers.
Italy will play Brazil in a friendly to be held in Switzerland, the Italian Football Federation (FIGC) have confirmed.
Ronaldinho is eyeing a shock return to the Brazil team under returning coach Luiz Felipe Scolari.
Luiz Felipe Scolari is confident Neymar's age will not prevent him from leading Brazil to success on the biggest stage.
Brazil are expected to appoint former World Cup winner Luiz Felipe Scolari as their new coach on Thursday.