Gerardo Pelusso has been appointed as the new national team manager of Paraguay.

The 58-year-old Uruguayan will succeed Francisco Arce, who was sacked on Tuesday with the team sitting second from bottom in their World Cup qualifying group and having taking only four points from their last five games.

Pelusso's recent success with Club Olimpia, where he won the national title last season, made him the ideal candidate to replace Arce, according to Paraguayan Football Association president Juan Angel Napout.

"We wanted a coach who was working in the domestic game," Napout told Primero de Marzo. "I think he knows the scene and was the only candidate we had.

"We're convinced this was the best choice and that we can go out to fight for our qualification. He'll decide who he works with, he's very enthusiastic with this opportunity and we are in being able to count on him."

Paraguay face China in a friendly next month before a crucial double-header against Argentina and Venezuela in September.