Born in Dos Hermanas, Province of Seville, Varela was a youth player at local Real Betis, and made his first-team – and La Liga – debut in 1996–97's closing stages, in a 1–1 away draw against Valencia CF.

In the 2001–02 season, after a six-month stint with Segunda División club CF Extremadura, he established himself definitely with the main squad, appearing in 25 league games.

Over six full campaigns with Betis, Varela only scored three goals, but they were noted as some of the best in the Andalusians' history, including once against FC Barcelona where, from his own half, he dribbled past five opponents struck the ball into the top corner with his left foot (2002–03),[1] and a fantastic left-footed volley against city rivals Sevilla FC in 2005–06.

[3][4] Towards the end of the season he was fully reinstated as right midfielder, being more involved in the team's offence and netting three times, including one against Real Madrid on the final matchday as the hosts eventually won 3–1 and conquered the league title.

[5] The following campaign, incidentally against Real Madrid, Varela scored twice, but Mallorca lost again in Spain's capital (4–3), on 11 November 2007.