The Uruguay international playmaker arrives at St Mary's for a club record fee from Serie A, adding to the considerable attacking reinforcements brought to the South Coast club
Southampton have completed the signing highly rated youngster Gaston Ramirez from Bologna.
The versatile 21-year-old has signed a four-year contract for the newly promoted side, arriving for a club record fee in the region of £12 million.
Ramirez, who can play on both the wing and in the centre of midfield, impressed for his country while on Olympic Games duty and manager Nigel Adkins spoke of his delight at landing the highly rated youngster.
Adkins told the club's official website: "A lot of hard work has gone in from the football club with a lot of negotiations behind the scenes to get this deal done.
"Great credit to everyone because we have a young, exciting talent joining us who is one of the best around.
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"The chairman has gone and backed this deal big-time with the financial outlay, and what we have got is one of the most exciting prospects in world football coming to St Mary’s.
"There is a lot of ambition at the Football Club and we are all delighted that Gaston is going to come and join us."
The left-footed playmaker scored ten goals in 35 appearances last season for the Rossoblu having joined the club in 2010, along with 11 international caps.
The Saints have added considerable attacking firepower over the summer to complement Rickie Lambert; signing forward Jay Rodriguez for a then record of £7 million from Burnley, and this week adding Zambia international striker Emmanuel Mayuka from Swiss side Young Boys.