Simon Cowell is to approach the attorney general's office after claims in the trial of singer Tulisa Contostavlos that he is gay.
While giving evidence at London's Southwark Crown Court, Mazher Mahmood, dubbed the "fake sheikh", claimed that he know people that Mr Cowell had slept with.
In the video recorded in Mr Mahmood's Metropolitan hotel suite, which was played to the court, the reporter was heard asking Mr Varey if X Factor judge Simon Cowell was gay.
Mr Varey replied: "Yes." Mr Mahmood asked: "Have you slept with him?" Mr Varey replied: "No." Asked why, he answered: "I will when I make my move." Mr Mahmood said: "How do you know he's gay?" Mr Varey replied: "I know people who have." The jury was sent home and told to return to the court on Monday.
A spokesman for Simon Cowell said: "We are bound by contempt of court rules so cannot respond to these claims in the manner we wish to.
"We are speaking to the Attorney General's office - and we intend to make a statement in court as soon as possible."
Tulisa Contostavlos is on trial facing claims of involvement in the supply of cocaine. She denies the charges.