Forlan will take over, reportedly on an interim basis, from Marcelo Bielsa who stepped down following Uruguay's group-stage exit from the World Cup.

"Diego Forlan is coming home (to take charge of) the Under-20 national team and the senior national team," the AUF said in a short statement.

The agreement with Forlan, who won the Golden Ball award for player of the tournament at the 2010 World Cup, was finalised after weeks of negotiations.

The 47-year-old will take over as interim coach but his contract keeps the door open for an extension, AUF sources recently told AFP.

He will be in charge of the team for friendlies in September, October and March.

Two-time world champions Uruguay are reeling after failing to get out of their group for a second successive World Cup.

Back-to-back draws with Saudi Arabia and Cape Verde put them in unexpected danger of crashing out, before their elimination was confirmed by a loss to eventual champions Spain.

The 71-year-old Bielsa was widely criticised for his tactics and for the decision to coax Fernando Muslera out of international retirement, with the veteran goalkeeper then making a string of errors.

Forlan has little coaching experience despite enjoying a stellar playing career.

He made his coaching debut during the 2020 season with former club Penarol but left the post after just 11 matches due to poor results.

Forlan's only other managerial stint came in 2021, when he spent 12 games in charge of Atenas in the Uruguayan second division.

He is highly regarded, though, in Uruguay after scoring 36 international goals, including five during their run to the 2010 World Cup semi-finals, in 112 appearances.

Forlan, alongside strike partner Luis Suarez, was also a key member of Uruguay's 2011 Copa America-winning side.

He enjoyed prolific spells at both Villarreal and Atletico Madrid in Spain, winning the European Golden Shoe award with both clubs.

Forlan endured a difficult stint at Manchester United between 2001 and 2004, despite winning the Premier League in 2002/03.