Daniel Alves says there is "no demerit" in replacing Luiz Felipe Scolari with a foreign coach following Brazil's humiliating World Cup exit.

Four days after their record-breaking 7-1 semifinal defeat to Germany, Brazil lost 3-0 to the Netherlands in the battle for third place in Brasilia.

"I think a foreign coach could add something," said Selecao defender Alves, an unused substitute at the Mane Garrincha stadium on Saturday.

"I'm not going to start a campaign for any coach to come but I don't see any demerit [in appointing a foreign coach]. They can bring things that are different to our football."

The Barcelona right-back added: "I think the best way to evolve is sometimes to admit that somebody else does things better than you. There's nothing wrong with saying that, whether it be in football or anything else in life."

After the match Scolari said Brazil's football confederation would decide his fate.

"That has to be decided by the confederation president [Jose Maria Marin]," Scolari told a press conference.

"When we started we had a deadline to make our jobs available at the end of the World Cup regardless of the result. And that is exactly what we're going to do with a final report for the president."

Local newspaper Folha de S.Paulo quoted Marin as saying Scolari's position had become "untenable" after the defeat to the Netherlands.

Earlier local media reported that the Brazilian confederation was pursuing Chelsea manager Jose Mourinho for the role.

Mourinho, who has three seasons left on his contract at Stamford Bridge, has not commented on the speculation.

Former Corinthians boss Tite remains favorite to replace Scolari with Sao Paulo manager Muricy Ramalho also mooted.

Scolari, who coached Brazil to victory at the 2002 World Cup, took charge of the Selecao for a second time in November 2012 following the sacking of Mano Menezes.