Luiz Felipe Scolari will not return as Brazil coach after reportedly stepping down from his post following their disappointing stint in the 2014 FIFA World Cup in Brazil.

Initial reports on Sunday indicated that Scolari was fired, but the Brazilian Football Confederation announced that the 65-year-old coach and his staff relinquished their position after their World Cup 2014 debacle - a decision that federation president Jose Maria Marin accepted.

"Coach Luiz Felipe Scolari and his fellow coaching staff surrendered their positions to the board of the Brazilian Football Confederation," the CBF said in a statement via ESPN FC. "The resignation was accepted by president Marin, who was keen to thank all the coaches and players and, by extension, the Brazilian fans for their support throughout the World Cup campaign."

Brazil was heavy favorite heading into the tournament, but their stint had a disastrous ending. The host country took a humiliating 7-1 loss to Germany in the semifinals, then ended the tournament with a disappointing 3-0 loss to Netherlands in the third-place match.

But despite their humiliating performance in the tournament, the federation insisted that Scolari and his staff deserve respect for their efforts over the past two years.

Scolari, who led Brazil to the 2012 FIFA World Cup title, had a good start in his return stint as manager, helping the team win the 2013 Confederation Cup.

"Scolari and his entire coaching staff deserve our respect and gratitude. They were responsible for returning to the Brazilian people your love for the team, despite not having achieved our greatest goal," the CBF added.

The announcement came after incoming federation president Marco Polo Del Nero expressed support to Scolari, saying that the loss to Brazil should not be blamed on the embattled coach alone.

Brazil captain Thiago Silva also had the same sentiment, insisting that the entire group should be held responsible for their disappointing performance in the tournament.

With Scolari out, reports indicated that under-23 coach Alexandre Gallo will take over as interim coach. The federation is not expected to name a coach soon, but sources said that former Corinthian manager Tite and Sau Paulo coach Muricy Ramalho will be considered for the job along with former Brazil manager Vanderlei Luxemburgo.