The Barcelona forward was utilised on the left during his country's World Cup campaign this summer, with Fred disappointing as an orthodox striker.
However, Dunga believes that the 22-year-old would shine more in the middle citing the example of the legendary Pele.
"We have to find a solution. Football is very versatile today and you need a lot of movement," he is quoted as saying by Sport.
"Having a fixed No.9 can do well in some tournaments, but not in others. You have to be mobile and create space. We have difficulties with some players because they leave when they are 17 or 18 and don't play for their teams.
"Then they have no experiences or self-esteem and the national team suffers.
"If we all believe that Neymar is our best player, he should play in that position and others should adapt to him.
"If we didn't play Pele in that position, Pele wouldn't have played well. Pele has to play in Pele's position and the others should adapt."