The Serie A champions have decided to buy the defender outright after he was able to impress while on loan during the second half of the campaign
The Uruguay international has put pen to paper on a four-year deal which will keep him at Juventus until 2016, with the Bianconeri spending €8 million (£6.4m) on the player.
Caceres, 25, spent the second half of the season on loan at the Turin-based club, making 11 Serie A appearances.
He had already played for Juve on loan in 2009-10, but failed to convince the club to hand him a permanent deal after enduring an injury-plagued campaign.
The former Barcelona defender has now become the first summer signing made by coach Antonio Conte, who signed a new contract on Thursday.