South American football governing body Conmebol had already given the former Juventus and Inter Milan player a provisional three-game ban for his part in a post-match brawl during their group match at Campeon del Siglo stadium in Montevideo, reports Xinhua news agency.
Television cameras captured Melo punching Penarol midfielder Matias Mier on the head as officials lost control of proceedings.
The ban means Melo will only be eligible to feature again in this year's Copa Libertadores if Palmeiras reach the semi-finals of South America's top club competition.
Conmebol also fined the 33-year-old $10,000.
Media reports in Uruguay said Penarol's Lucas Hernandez, Nahitan Nandez and Matias Mier were also banned for five matches and handed $10,000 fines.
Both clubs have seven days to appeal against the decisions.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.