The 20-year-old moved to Anfield after an impressive Copa America campaign for Uruguay, and joins Luis Suarez who also played for the Montevideo based side earlier in his career.
Director of football at the Merseyside club Damien Comolli played a big part in bringing the South American duo to the Premier League side, and has hinted at future co-operation with Nacional.
“I’ve got to thank the people from Nacional, the directors and their chairman, because they have been very helpful. They tried to help the player complete his will, which was to come here,” the French executive told the club’s official website.
“They tried to find a solution for us to make it happen. We now have strong links with them because both Luis Suarez and Sebastian Coates have come from this club and been developed by their academy,” he continued.
Comolli mentioned the prospect of making the deal more formal, and was full of praise for the team’s youth system.
“We are talking about a partnership with them that we would like to create over the next three, four or five years, to see if there is more talent coming through. Maybe we can help them to develop their standards and in turn have the ability to bring those young players here.
“During the Copa America they had 14 players out of the 23 who had at some point played at Nacional or were developed by Nacional. That is a fantastic record for their academy,” he concluded.