According to reports, Peñarol club president Jorge Barrera informed Forlán that he is no longer the coach of the team, his first experience as a coach after being the best player of the 2010 World Cup.

Under his leadership, Peñarol played nine official matches in the local tournament, with three wins, three draws, and three losses, placing them in seventh position in the standings with twelve points, seven behind the leader, Montevideo Wanderers, who defeated them 2-0 last Sunday.

In addition, in the Copa Libertadores, they suffered a 1-0 defeat against Brazilian team Athletico Paranaense and achieved a 1-0 victory against the Bolivian team Jorge Wilstermann.

According to club sources, the Board of Directors will meet at the club's headquarters, known as Palacio Peñarol, at 6:00 p.m. local time (9:00 p.m. GMT) on Monday to discuss the situation and it is expected that they will officially announce the dismissal and the replacement for Forlán.

The poor results obtained by Peñarol in the local competition, especially in the last few matches where they saw a 0-2 lead against Rentistas turn into a 2-2 draw and Wanderers defeated them during their visit to the Campeón del Siglo stadium, had cast doubt on Forlán's continuity.

The former striker for Spanish clubs Villarreal and Atlético de Madrid, as well as Independiente in Argentina and Manchester United in England, was presented as Peñarol's coach on December 20, 2019, just 8 days before his official farewell as a player, in an event attended by great players such as Luis Suárez, Juan Sebastián Verón, and Juan Román Riquelme.

This was Forlán's first coaching experience. In an interview with Efe, the former footballer acknowledged that it was a "great responsibility," but that he had always been motivated by "challenges."

"This is undoubtedly one of the biggest challenges I will have, just like coming to Peñarol (as a player) was, and now as a coach and leader of a team. Without a doubt, it won't be easy," he explained at that time.

He also summed it up in one sentence: "I am given the great opportunity to coach a historic club like Peñarol, and what could be more beautiful than having that challenge ahead of me?"

'Cachavacha' wore the Peñarol jersey during the 2015-2016 season and is an avowed fan of the club, so his signing by the yellow-and-black entity shortly after his professional retirement on August 6, 2019, did not come as a surprise.