step-uncle?
This is a correct appellation, but there are other considerations. Is this a step-uncle of long standing you are comfortable just calling Uncle ? Are you older than this step-uncle ? Perhaps you would both be more comfortable just using first names ? This is a family decision, feel free to give your opinion to the parents in a respectful manner and try to find a solution everybody is comfortable with.
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Your father's brother is your uncle. The English language does not have different words for the older or the younger brother. Both are simply your uncles.
In common usage of the English language, the brother of your father-in-law is your spouse's uncle, but is not related to you.