Manchester United have announced the signing of Penarol fullback Guillermo Varela. The 20-year-old Uruguayan is moving to Old Trafford, with United's official website reporting an undisclosed fee.

David Moyes, who is new to the job after replacing the retired Sir Alex Ferguson will be able to view Varela in action immediately as he is in Uruguay's squad for the Under-20 World Championships in Turkey.

Varela, who played just one senior game for Penarol, is a full-back and will provide competition for the likes of Rafael and Fabio da Silva, Patrice Evra and Alexander Buttner.