Penarol signs Uruguayan forward Diego Forlan

Montevideo, July 9 : Uruguayan forward Diego Forlan has agreed to sign for Montevideo side Penarol, club executive Edgar Welker has said.

"The contract with Diego Forlan is for a year and a half," said Welker on local radio on Wedesnday, as the club closed weeks-long negotiations, reported Xinhua news agency.

Forlan was named the best player in the World Cup 2010 in South Africa. His new contract will bring him back to his place of birth from Cerezo Osaka in Japan.

He will join Penarol team either on Friday or Saturday.

The team are currently in their pre-season training at the seaside resort of Punta del Este (eastern Uruguay) with coach Pablo Bengoechea.

Forlan, 36, is slated to play his first match for the South American side in a friendly on July 18 with the opponent still to be confirmed according to Penarol sources.