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Chairman Barry Kilby and manager Owen Coyle attended the Home Office hearing in Sheffield and it was dealt with very quickly as the panel awarded the permit for the full three years of his contract.
Coyle said: "We are absolutely delighted with the outcome. The chairman and I attended the hearing and the panel were very receptive to what we had to say. I think they saw that Diego Penny could have a big future at Burnley Football Club and we thank them for their decision."
Kilby added: "I think we put forward a convincing case for Diego and we are delighted that the panel saw fit to agree with our opinion that he could be a very big player for Burnley Football Club.
Penny - full name Diego Alonso Penny Valdez - now joins the Clarets from Coronel Bolognesi and has committed to the Clarets until the end of the 2010/11 season. He's played over 150 games for his club and has also played in two of Peru's World Cup qualifiers.
So a busy week comes to an end with Burnley having completed no fewer than four signings - Martin Paterson, Kevin McDonald, Christian Kalvenes and now Diego Penny. All four of them will report for pre-season training with the rest of the squad next week.