Brazil failed to get past the group stage, after winning just one of their three games at the tournament in Australia and New Zealand.
The Swede, who took over as Brazil manager in 2019, had one year left on her contract and was due to coach the team at the Paris 2024 Olympics.
"I would like to thank Pia and all those who worked with her and were part of the coaching staff," said CBF president Ednaldo Rodrigues.
"During this period, from 2019 to the present, Pia has also done work that has been very important for Brazilian football. We wish her every success in her new challenges."
The CBF added they will announce in the following days the new coaching staff for next year's Games and the next Women's World Cup in 2027.
Sundhage led Brazil in 57 matches, with 34 wins, 10 defeats and 13 draws.
