The French starlet has moved ahead of Pepe in the pecking order at the Bernabeu in recent months, thanks largely to a series of accomplished displays alongside Sergio Ramos.
Pepe believes that Varane deserves his early success and is happy to keep working hard when given the chance by Jose Mourinho.
He told reporters: "I'm happy for Varane because he deserves it. He has worked hard and is a player who has a bright future.
"Madrid are the only ones that can compare who is more favourable than the other.
"We have had a very turbulent season, but the most important thing is that we never drop our effort."