He was facing further sanction after the red card he picked up during the latter stages of the Ospreys v Munster league match played in Swansea last Saturday.
The disciplinary committee was headed up by chairman Paul Minto and also included fellow Scotsmen John Kirk and Rob Flockhart.
Having listened to the testimony and reviewed all of the evidence available, the committee decided to uphold the red card issued by referee Dudley Phillips, but believed that the offence did not warrant further sanction being imposed.
However, they did warn Varley as to his future conduct and the reckless nature of the incident.
The Ireland hooker is therefore free to resume playing with immediate effect, and also has the right of appeal.
In light of events in Edinburgh and with several of his players just back in full training this week, Munster head coach Rob Penney will wait until Friday afternoon before announcing his team and replacements for the Leinster game.