The Serie A outfit actually signed Sanchez in 2006, but he was subsequently sent back to South America on loan for the next two seasons.He first played for Colo-Colo in Chile, before Argentine giants River Plate took him last year.
Sanchez helped River to the title last year and has emerged as one of the finest midfield prospects in South America.
His form caught the eye of a number of clubs, including Manchester United and Sanchez's agent revealed earlier this month that Sir Alex Ferguson's side had made a bid.
Udinese shunned all offers for Sanchez, deciding instead they would give him his bow in European football this term.
"I am here to show what I can do," said the Chilean, known as 'The Wonder' in his homeland.
"I am really happy to be here."
Udinese's sporting director Pietro Leonadi admitted the club were delighted to have Sanchez.
"We are proud to have Sanchez," Leonardi said.
"Now we just have to give him time to adapt to this environment. He will do his talking on the pitch."
Source: Sky Sports
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