Iran Press/ America: The front-runner to replace him is Dorival Júnior from Sao Paulo.
The source at the Brazilian Football Confederation, who spoke on condition of anonymity as he was not authorized to discuss the firing, said the decision came from CBF president Ednaldo Rodrigues.
Rodrigues was returned to office by Brazil's Supreme Court on Thursday, one month after another court ousted him and his directors.
Diniz split the Brazil job with coaching Fluminense, the Copa Libertadores champion.
He was contracted to the middle of the year as Rodrigues expected Real Madrid coach Carlo Ancelotti to take the Brazil job before the Copa America in June in the United States. But Ancelotti recently extended his stay at Madrid.
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