Cerro Porteño
In March 2013, Arce was appointed coach of the Paraguayan Cerro Porteño. He won the Torneo Clausura in 2013 with Cerro Porteño in highly impressive form, as the club went the entire Clausura undefeated. After a 4–1 defeat to Club Guaraní on 24 August 2014 Arce left Cerro Porteño.