Lugano is vastly experienced and a key part of the Uruguay national team set up.
He joins West Brom for a fee reported to be in the region of £1 million.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.