The South Americans saw their hopes of qualifying from Group D suffer a blow on Saturday with a surprise 3-1 defeat to Costa Rica.
Despite matches against England and Italy to come, Lugano believes that Uruguay are capable of progressing in Brazil.
"If it was difficult before, now it's much more difficult, but not impossible," he tweeted. "It will depend on what we can overcome.
"What happened is within the realm of probability. Costa Rica deserved it and we made mistakes. There is a lot we can correct and improve on."
Uruguay return to action on Thursday when they meet England in Sao Paulo.