At just 16 years old, Varela has already represented Portugal in the U17 international team, showcasing his skills as a winger.
Andy Bara, Varela's agent, who also represents Barcelona star Dani Olmo, recently met with Barcelona's sports director, Deco, in Barcelona.
The initial transfer fee for Varela is reportedly €5 million, with the total transfer potentially reaching €20 million over time.
As part of the agreement, Varela will continue to play for Dinamo Zagreb for another year before joining Barcelona in the summer of 2026.