Neymar's summer schedule has been the subject of much debate, with the Barcelona superstar initially vowing to play both tournaments -- the 16-team Copa America in the United States in June followed by the Olympics in August.
But the chances of Barcelona signing off on such a gruelling schedule for their prized striker seem remote.
With the Copa America part of the FIFA calendar, Barcelona are obliged to release Neymar for the tournament.
It is possible Barcelona could give Neymar the green light to play in the the Olympics on the condition he does not play the Copa America.
Dunga, who is currently in Europe negotiating the release of players for Brazil's busy summer, said if forced to choose, he would make the Olympics the priority for Neymar.
"It's hard (to choose), but I think, given the importance of trying to win the only medal that Brazil does not have, the fact that we are playing at home," Dunga told Esporte television channel from Madrid.
Neymar would be one of the three over-23 players allowed in the Brazil squad.
Brazil are targeting the Olympics to help exorcise the bitter memory of their 2014 World Cup campaign on home soil, which ended with a humiliating 7-1 thrashing by Germany in the semi-finals.
The Copa America Centenario, which marks 100 years of the South American showpiece, is to be staged in 10 cities in the United States between June 3 and 26.
Brazil is seeded in Group B, facing Peru, Haiti and Ecuador.
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