The former Selecao captain led the national team for four years, winning the Copa America in 2007 and the Confederations Cup in 2009, but was sacked after a quarter-final exit to Netherlands in South Africa.
"The most important thing is to put the ideas into practice. I want a vibrant and competitive team," Dunga told reporters at his unveiling.
"Inter have a battling team and in football we can always learn."
Dunga, who had began and ended his playing career with Internacional, went on to voice his opinion that he had landed one of the most exclusive roles in the game.
"The Internacional job is like the Brazil job; you do not go when you want, you go when you are called," Dunga said.
Club president Giovanni Luigi chose to replace former boss Fernandao with Dunga after watching the club finish ninth in the recently concluded Brasileiro.