He has become a regular member of Dinamo's first team and has also impressed with Portugal's youth teams.
Varela's representatives have maintained a close relationship with Barcelona's sporting director Deco, who has expressed interest in signing the young player next year.
Deco is reportedly considering the possibility of bringing Varela to Barcelona, or potentially signing Manchester United's Marcus Rashford instead.
However, it's unclear whether Varela would be willing to join Barcelona if he doesn't see a clear path to the first team.