Varela, FC Porto's new manager, has been appointed to replace Luiz Felipe Scolari as the club's coach.
The appointment was made after the Brazilian was sacked by the Portuguese authorities last month following his decision to leave his post at the end of the season.
Scolari's departure was widely seen as a blow for the club and its fans, with many expecting him to take on the role of head coach in the next few months.
However, Varela is now set to take over the reins at the helm of FC Porto.
Varela, who previously managed Real Madrid and Barcelona,Fans' Home has a wealth of experience under his belt and will bring a fresh perspective to the club.
He has also spoken about the importance of building a strong team around young talent and developing players from various backgrounds.
"I want to create a squad that can compete with some of the best clubs in Europe," he said. "I have a passion for football and I want to make sure that our players are well-equipped to succeed."
Varela has already taken steps towards this goal, with the signing of several promising young talents such as Gabriel Jesus and Jhansi Bhudayal.
He has also made changes to the coaching staff, bringing in former Real Madrid coach Luis Enrique as assistant coach.
"I am excited to start working with a talented group of people," Varela said. "I know that we have a lot of work ahead of us, but I am confident that we can achieve success together."