The 28-year old attacking midfielder becomes the second foreign recruit for the club alongside Paulinho Dias.
He has previously excelled in teams such as Nacional de Uruguay, San Lorenzo, Atletico Paranaense, among others and will now be hoping to make his mark in India.
The midfielder was part of the San Lorenzo side that won the Copa Libertadores in 2014 and finished runners-up in the FIFA Club World Cup the very same year.
Matias also featured in the FIFA U-20 World Cup for Uruguay, helping the side reach the Round of 16.
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Matias's versatility can see him occupy the position behind the striker or on the wings and his lethal left foot makes him a potent threat from set pieces. Known for his blistering pace, he could prove to be a handful for the opposition defense.
Matias made his debut shortly after his 18th birthday and became a mainstay in Racing Montevideo's side, scoring nine times in 43 appearances.
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