The highly-rated midfielder made his debut for the Argentinian giants in June 2020 and has made 85 appearances since, scoring his first and only goal to date for the club last year.
At only 21 years of age, Varela has featured in all of Boca's opening seven matches of their 2023 league campaign, including the side's 1-0 defeat at Banfield on Sunday evening.
According to Football Insider, Liverpool are set to rival Barcelona and Newcastle United for the signature of Varela in the summer, with other European clubs also keeping tabs on the player.
The report also claims that the Reds and the Magpies have dispatched scouts to track the progress of Varela, who was subject to interest from the likes of Benfica in the January transfer window.
Varela signed a new contract with Boca Juniors last year, but it is understood the player would be open to a move to Europe this summer, with a preference of making the switch to a Premier League outfit.