His arrest was the result of a joint operation between police in South America and investigators in Calabria, the home of the 'Ndrangheta. The organised crime network, which for years has been extending its reach, makes millions by smuggling cocaine into Europe, often via Italy.
Morabito was arrested in a hotel in Punta del Este, a tourist resort about 150km from the capital, Montevideo, "after months of intense international co-operation in intelligence matters", the Italian police said in a statement.
His false identity was known to Interpol, and when he checked into the hotel an alert was generated. His wife, a 54-year-old Angolan with a Portuguese passport, was also arrested.
Morabito is expected to be extradited back to Italy in the coming months, where he faces 30 years in prison for various crimes, including mafia association and drug trafficking.