 In 1935 he signed for Peñarol where he was part of the team that won four successive league titles between 1935 and 1938.Varela was part of the Uruguay national football team that won the South American Championship, still remaining the equal 3rd highest scorer in the history of Copa América with 15 goals.In 1942 Varela joined Boca Juniors of Argentina for $32.800.