Forlan, who is best known for representing Uruguay from 2002-14 and clubs like Manchester United, Villarreal, Atletico Madrid and Inter Milan, is one of the most important figures of his country's football history. 

He comes to the setup after the team's group stage finish in the FIFA World Cup, where the two-time champions failed to win a match, marking their worst performance in the tournament's history.

A statement from the Uruguayan Football Association said, "The Uruguayan Football Association announces the return of Diego Forlan to the Uruguayan National Team. One of the most important figures in the history of La Celeste begins a new chapter: he will be the head coach of both the Under-20 and Senior National Teams."

Forlan represented Uruguay in 112 matches, scoring 36 goals and capturing the Copa America 2011 with them and playing a crucial role in their fourth-place finish in the 2010 FIFA World Cup with five goals.

Forlan will begin working immediately with the under-20 team. There, he will lead a project aimed at developing young talent, supporting their growth, and strengthening their path to the senior national team.