Doutie was last on the books of Indian Super League side Jamshedpur FC, where he made seven appearances.
The 29-year-old winger has now penned a deal with the Swedish second division side, confirming the deal on social media.
Doutie will now join fellow South African Kermit Erasmus in the Superettan, with the latter currently plying his trade for AFC Eskilstuna.
Varnamo currently sit bottom in the Swedish second division with five points after 14 games.