In 2001, he moved to Club Libertad, where he was reunited with Sandoval: he won back-to-back Paraguayan Primera División titles with the side, in 2002 and 2003, signing the following year with Argentina's Newell's Old Boys.

During the 2009–10 season, Villar constantly battled for first-choice status with Jacobo,[5] featuring in 23 games as the Castile and León side returned to Segunda División after a three-year stay.

[9] After one season with Asunción-based Club Nacional, Villar announced his retirement from professional football at age 41, adding he wished to remain active in the sport.

[11][12][13][14] Having been selected for the 2002 FIFA World Cup, backing up José Luis Chilavert, Villar was already a starter in the 2006 edition, but had a brief participation: during the first seven minutes of the opener against England, just after Carlos Gamarra's own goal, he got injured, was replaced by Aldo Bobadilla and subsequently sidelined for the rest of the tournament,[15] in which the national team was eliminated in the first round.

[17] During the 2011 Copa América he was again first-choice and captain, and helped his team reach the final, notably saving a penalty in the quarter-finals shootout against Brazil (0–0 after 120 minutes);[18] he was named the Best Goalkeeper for his displays during the competition, keeping clean sheets in three games.