The club have now completed their foreign quota by bringing in the Uruguayan forward, who only joined Lazio last January in a 3.2 million euros deal from Liverpool de Montevideo.
The 24-year-old joins Lucas Neill, Mariano Donda and Mahmoud Shikabala as the four foreign players in the squad.
Alfaro was not Al Wasl’s first choice target, but he was signed after the club missed out on former Middlesbrough striker Afonso Alves and Emmanuel Clottey.
The Uruguayan international made just eight Serie A appearances last term and failed to score a single goal in the process as he slipped down the ranks at the Biancocelesti.
Al Wasl have the option to make the transfer permanent for a set fee.
- Mariano Donda
- Lucas Neill