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The 71-year-old, who has battled with cancer over the last year, concluded his third spell as the Netherlands coach with their penalty shootout loss to Argentina and will be replaced by Ronald Koeman.
With the semi-final showdown with either Argentina or the Netherlands looming, Tite's men let their guards down and allowed Croatia to score an equaliser from a counter-attack with three minutes left in extra-time.
The Netherlands had bounced back from 0-2 to force Extra Time with substitute Wout Weghorst scoring two goals late in the match.
Emiliano Martinez was Argentina's hero in the shootout as he made a couple of saves.
As to the penalty shootout we are fighters, said Croatia's goalkeeper Dominik Livakovic.
Neymar scored in the first half of Extra Time before Croatia equalised and prevailed in shootout.
The Croats kept their composure from the penalty spot as Brazil's Marquinhos and Rodrygo failed to convert.
Croatia have reached the semifinals for the second edition in a row. The Europeans have made the last four three times in total.
The Atlas Lions have the best defensive record among all quarterfinalists, conceding just one goal from four matches.
Brazil have never lost to Croatia in their four previous encounters.