It's neither, he just won't be renewed. It's fair enough I guess, I'm still glad he was able to bring Brazil back on the map until the last two games. I don't think people remember how shit we actually were under Mano. We couldn't beat teams not named China or Iraq. Although I'm not happy with rumours doing the round that we're after a foreigner.
Looks like he has fallen on his sword
http://www1.skysports.com/FIFA-World-Cup-2014/news/12027/9382444/world-cup-confederation-of-brazilian-football-confirms-luiz-felipe-scolari-departure