Julio Ribas has returned to coach Penarol eight years after his his first spell in charge of the club ended.
Ribas, 52, is a fan favourite at the Montevideo-based club after he led them to back-to-back Clausura titles in 1999 and 2000 as well as the Uruguayan title in 1999.
Penarol president Pedro Damiani said he hoped Ribas would revive that success after Mario Saralegui resigned from the post on Sunday following a 2-1 friendly defeat to arch-rivals Nacional.
"In 1999 he changed the fans disillusionment into euphoria. We told him the board's plans and he quickly accepted," Damiani said at a press conference today.
"He is a natural-born winner and I am convinced that the best is yet to come."
Ribas was delighted to return to the club and vowed to repay the board's faith in him.
"Due to the circumstances of life I have the chance to defend their (the board's) marvellous plans for the club and I am going to do it with all my soul," he said.
"I am very thankful and proud that I can come back to Penarol, and the club's great history is calling us to succeed.
"This is a great chance for glory, it's the project that I always dreamt of."