Marcelo Djaló signed a three-year deal at Fulham after joining them from Spanish side Lugo in 2017.
Last summer, the English side allowed the defender to join Segunda Division side Extremadura on a season-long loan deal, but his stay was cut short and he returned to his parent club in January.
The 25-year-old did not feature for the Cottagers last season and earlier reports indicated the centre-back was out of favour at Fulham.
Marcelo still had a year left on his contract with the Championship side. However, he terminated his contract with Fulham and completed a switch to Lugo on Tuesday.
This was confirmed by Lugo’s official website as they state Marcelo arrives ‘after disassociating’ from Fulham. He has signed a three-year deal, which will keep him at La Liga 2 side until 2022.