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Uruguay have lost ground since winning the Copa America in Argentina two years ago and face a struggle to qualify for the World Cup finals next year in Brazil.
The two-time World Cup winners are currently only sixth in regional qualifying and the Confederations event is a mere distraction from the main aim of reaching the finals.
Luis Suarez will come in having missed the midweek win over Venezuela with Forlan dropping to the bench, coach Oscar Tabarez said.
But Forlan, 34, and now with Internacional in Brazil, "is still a very useful player for us," Tabarez insisted.
He misses out owing to Suarez's strong season with Liverpool while Edinson Cavani also has been in form with Napoli.
"It was not an easy decision to take – Forlan is very professional," said Tabarez.
"The group owe him a lot," he added of the veteran's showings at the Copa America and also in the Celeste's run to the World Cup semifinals in 2010, during which he scored five goals.