The 20-year-old, who is regarded as one of the best young defenders in world football, missed the end of last season following knee surgery.
However, he has recently returned to first-team training for the Spanish outfit and started their last two matches.
"It is flattering, it gives me the strength to continue on. I have the fortune of playing in one of the biggest clubs in the world, we have the best defenders and competition is fierce," he told Telefoot.
"I get along with [assistant Coach Zinedine] Zidane, who is at the club working and I am trying to evolve and to progress."
Varane is also back in the France squad.