The Selecao were embarrassed 7-1 by Germany in the semi-finals of the World Cup on Tuesday, casting severe doubt over the future of their head coach
The South Americans were one of the favourites to win the tournament on home soil, but their bid for a sixth title came to an abrupt halt on Tuesday when they were demolished 7-1 by Germany in the semi-finals.
Zico feels Scolari should consequently leave his position and has suggested Sao Paulo coach Muricy Ramalho as his replacement.
"We should thank Scolari and thank [assistant coach Carlos Alberto] Parreira too. But we need to choose new people with new thoughts about how to play the Brazilian way," The former Brazil star told news agency EFE.
"Ramalho is one the greatest champions of the Brazilian league, which is one of the hardest in the world to win."
Zico then went on to discuss the strength of Brazil and stressed that their failure to win the World Cup is the result of a lack of quality.
"If you look at the starting players in the last year, none of them were key players at their clubs," he added.
"Look at Neymar, the best player in Brazil, but how many times was he on the bench for Barcelona last season...
"Fred, Marcelo, Hulk all played inconsistently. Even David Luiz and Oscar, you can't say they were first choices at Chelsea."
Brazil meet Netherlands in the battle for third place in Brasilia on Saturday.