Manchester United coughed up £1 million for Penarol fullback Guillermo Varela.

Varela, 18, has penned a five-year deal with United this week.

The Manchester Evening News says he cost United £1 million from Penarol.

Varela, said to be similar in style to former United full-back Gabriel Heinze, had a 10-day trial at the end of the season and impressed outgoing boss Sir Alex Ferguson enough for him to recommend he should be signed.