Italy was reduced to 10 men when Claudio Marchisio was issued a straight red card for a dangerous challenge on Egidio Arevalo in the 59th minute.
Uruguay eventually took advantage of the extra man as Godin turned in a corner kick from Gaston Ramirez nine minutes from time.
The goal did not come without controversy as Luis Suarez appeared to bite Giorgio Chiellini just one minute before the breakthrough.
But the incident went unseen and Uruguay closed out the match at full strength to secure a second-place finish in Group D, likely setting up a meeting with Colombia in the round of 16 on Saturday.
More to follow...