Varejao, 30, suffered a knee contusion in a Dec. 18 game. He hasn't played since. Team officials said there has been "continued, gradual recovery" but examinations have uncovered additional issues.
As a result, surgery was scheduled for Thursday with Varejao's recovery expected to take 6-8 weeks.
Varejao averaged an NBA-best 14.4 rebounds in 25 games this season. His 14.1 point scoring average is third highest on the Cavaliers. In nine NBA seasons -- all with Cleveland, Varejao averaged 7.7 points and 7.6 rebounds a game.