Argentina's soccer player Gonzalo Higuain (Front) celebrates his goal during the match of quarterfinals of Copa America between Argentina and Uruguay in Santa Fe city, Argentina, July 16, 2011. Uruguay won 6-5. (Xinhua/Claudio Cruz)
The game took place in the "Brigadier Estanislao Lopez" Stadium, in the city of Santa Fe which is 476 kilometers north from Buenos Aires.
Defender Diego Perez scored the opener for the Uruguayans in the 5th minute, and striker Gonzalo Higuain from Real Madrid equalized 12 minutes later.
Both sides ended the game with 10 players due to the sent-offs of Perez (38th minute) and Argentina captain Javier Mascherano (86th minute).
The game was entertaining and dramatic, with the Uruguayan goalkeeper Fernando Muslera honored as the Man of the Match.
After 120 minutes of football in which star Lionel Messi showed a good performance despite many fouls over him, the game went into penalties.
The first four penalties were all successful but substitute Carlos Tevez from English Premier side Manchester City missed the third one for Argentina after a great saving by Muslera.
The Uruguayans converted their remaining penalties, with Caceres scoring the fifth and final one.
Uruguay will face Peru in the semifinal which will take place in La Plata, 60 kilometers from Buenos Aires, at the "Estadio Unico" next Thursday.
The other two quarterfinal clashes will be staged on Sunday with Brazil to meet Paraguay in La Plata and Chile to face Venezuela in San Juan.
In a quarterfinal match played earlier on Saturday, Peru stunned Colombia 2-0 with both goals scored in the extra-time.