The Santos forward has long been linked with a move outside his native Brazil, but the former national team boss has advised his countryman against making the move just yet.
The Santos striker is widely expected to continue his career on the continent in the near future, with the likes of Barcelona and Chelsea reportedly registering an interest in the 20-year-old, who has 25 international caps to his name.
But at a press event organised in Kolkata to announce an exhibition friendly between the Brazilian Masters and Sports Ministers Legends on Dec. 8, Dunga, who will feature in the match, took the opportunity to warn the forward against a transfer.
"He should not play in Europe now," Dunga said. "He can take a call after three years. He is currently the best player in Brazil, but he needs to gain more experience. He is Brazil’s best asset to win trophies.
"For now I feel he should stay in Brazil. If he moves to Europe now, he will have to adapt to a new environment and that could affect his form. His target should be to do well in World Cup 2014, and for that it's best if he remains in Brazil."
Dunga coached the Selecao for a four-year period between 2006 and 2010 and led the nation to the quarterfinals of the World Cup in South Africa before his dismissal, with Mano Menezes taking the reins.
The former midfielder is desperate for the next generation to mature and begin a march up the world rankings - something he believes it is capable of doing.
"We don't want our team there [14th in the world]," Dunga said. "We know [Spain] are the best. The team is growing up. We need time. We need to keep playing and we will get there. We have good enough players. The team is getting strong. I'm sure we are going to bounce back soon."
Some supporters booed Menezes' youngsters following their Olympic final defeat to Mexico, but the 48-year-old Dunga does not believe there is a sizeable gap between the current crop of Brazilians and previous generations.
"There is not much of a difference in the standard of football. In the past, the winning margin would be three or four goals, while these days we are winning by only one or two," Dunga said. "We have home advantage and so we have a chance [to win the World Cup]. We have plenty of talent in the team like Neymar, Ganso, Oscar and Lucas [Moura].
"Kaka is a very important member of the Brazil national team, even though he is not a regular at his club [Real Madrid], while with Ronaldinho it only depends on him. If he plays the way he does for Barcelona, then it would be a welcome sign. [As for Mano Menezes], he is very new. It's too early to say anything about him. We have to see how he does in the future."
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