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Varnado played in five games earlier this season with the Boston Celtics, scoring six points in a total of 18 minutes. The Celtics waived him on Sunday.
It's a homecoming of sorts for Varnado, the former Mississippi State star who was a second-round draft choice by Miami in 2010. The Heat signed Varnado on Sept. 7 and waived him on Oct. 26, just before the start of the regular season.
Varnado had four points, seven rebounds, one steal and a block in 30 minutes for the Heat summer-league team.
Miami's roster now stands at 14.