Uruguay club Penarol reached the Copa Libertadores final on Thursday despite a 2-1 loss to Argentina's Velez Sarsfield, setting up a two-legged final against Brazilian club Santos.

Penarol and Velez drew 2-2 on aggregate over two legs, but Penarol advanced on the away-goals rule.

Penarol won 1-0 in Uruguay a week ago.

Matias Mier gave Penarol a 1-0 lead in the 34th, but Velez responded with a first-half, injury-time goal from Fernando Tobio and a strike from Santiago Silva in the 67th minute. Silva had a chance to clinch a spot in the final for Velez but missed a penalty late in the game.

Velez played with 10 men from the 70th minute when Fernando Ortiz was sent off.

Santos advanced Wednesday, drawing Paraguay's Cerro Porteno 3-3 to advance 4-3 on aggregate over two legs.

''Returning to play the Libertadores final in incredible,'' said Penarol coach Diego Aguirre, who played in 1987 on the last of Penarol's five championship teams.

Penarol also won South America's top club title in 1960, '61, '66 and '82. It has the third-most titles behind Argentine clubs Independiente (seven) and Boca Juniors (six).

Penarol will open the final on June 15 in the Uruguay capital, Montevideo. Santos has won the title twice and is expected to play the second leg in Sao Paulo.

During an evenly played first half Thursday, Mier broke from the left side and drove the ball home from 10 meters (yards). Velez appeared to have leveled the score in the 42nd on a shot by Juan Manuel Martinez but the play was correctly called offside.

Velez scored minutes later in injury time on a close-in header by Tobio.

Velez had its chances in the second half. Silva leaped high in the 63rd on a header that was stopped, but scored four minutes later on a shot that hugged the ground, hit the post and went in.

Silva, Velez's top player, had a chance to win the match in the 76th on a penalty - called for a handball in the area - but his attempt sailed over the crossbar. Silva slipped as he kicked the penalty, causing the ball to sail high.