Protein tyrosine kinases and phosphatases play important roles in the regulation of cell growth, development, and differentiation. We report here the identification in Trypanosoma cruzi of a gene (TcPRL-1) encoding a protein tyrosine phosphatase. The predicted protein (TcPRL-1) shares ca. 35% identity with the mammalian protein tyrosine phosphatase known as phosphatase of regenerating liver 1 (PRL-1). Four copies of this protein tyrosine phosphatase are present in the T. cruzi genome, and Northern blot assays showed a transcript of ϳ750 bases. TcPRL-1 was detected by Western blot analysis only in amastigote extracts as a 21-kDa protein.TcPRL-1 was expressed in Escherichia coli, and its phosphatase activity was determined by using p-nitrophenylphosphate and a phosphorylated protein as substrates. In contrast to other PRLs, TcPRL-1 activity was not affected by pentamidine, and it was inhibited by very low concentrations of o-vanadate. TcPRL-1 has a C-terminal CAAX motif (CAVM) and is farnesylated in vitro by T. cruzi epimastigote extracts and in vivo according to the transfection results. After transfection of T. cruzi with a vector that expresses TcPRL-1 as a C-terminal fusion to green fluorescent protein, GFP-TcPRL-1 was detected in the endocytic pathway of epimastigotes, amastigotes, and trypomastigotes by colocalization with cruzipain and concanavalin A. Interestingly, a mutant form without the CAAX motif localized to the cytoplasm, in contrast to its mammalian counterparts that localize to the nucleus. The results of these studies on TcPRL-1 reveal that, even though the animal and parasite PRLs share similar kinetic properties, their susceptibilities to inhibitors, as well as their localization, are distinct, implying that they may be involved in different cellular processes.Phosphorylation of proteins in specific tyrosyl residues is a major control mechanism for several processes such as normal cell growth, differentiation, metabolism, cell cycle, cell migration, and gene expression, among others (16). The levels of cellular protein phosphorylation in tyrosine residues are controlled by the activities of both protein tyrosine kinases and phosphatases. Although protein tyrosine phosphatases (PTPs) were initially believed to have housekeeping roles, it is now obvious that they are highly regulated and specific enzymes (33).PTPs form a large superfamily of enzymes with more than 100 members. The hallmark that defines the PTP superfamily is the presence of the signature motif (or active site), HCX 2 GX 2 R in the catalytic domain. PTPs can be divided according to their sequence homology and substrate specificity in tyrosine-specific phosphatases and dual-specific phosphatases. The latter class of phosphatases are the only that cleave phosphoester bonds in proteins that contain phosphotyrosine (pTyr), as well as phosphoserine and phosphothreonine.The phosphatase of regenerating liver (PRL) phosphatases represents a new class of PTP. These phosphatases, in mammals, belong to a family composed by at least three mem...