Updated

Manchester United confirmed Tuesday that the club has signed defender Guillermo Varela from Penarol on a five-year contract.

Varela, 20, had a two-week trial with the Premier League champions in May and made a good enough impression for United to move for the Uruguayan youngster.

"I'm very pleased to be a part of this club, one of the best teams in the world," Varela told's United's official website. "As everyone in the world knows, this is a huge club that has won everything and I really hope that continues."

Financial details of the transfer were not disclosed.