Nottingham Forest are said to be interested in snapping up the Benfica stopper this summer.
Varela has interest from both Newcastle United and Watford, but Forest are the latest club to have reportedly shown interest in taking the youngster.
Varela made 29 appearances for Benfica last term, and he appears to have a big future ahead of him.
Forest have also been linked with Costel Pantilimon this summer, with a new goalkeeper seemingly on Aitor Karanka’s radar.
Pantilimon would be a considerably cheaper signing than Varela, but Forest do appear to have money to spend.
The Reds have already done business with Benfica this summer, with Joao Carvalho and Diogo Goncalves both arriving in recent weeks.
If Forest could bring in Varela it would be another signal of their ambition, as Karanka’s side look to push for promotion.