Via Yahoo Sports' Dmitry Chesnokov, Varlamov's agent has told Pavel Lysenkov of Sovietsky Sport that the goaltender has chosen to join the KHL instead of remaining with the Caps. The specific KHL team was not specified.
The Caps have not released any sort of statement, so this continues to be speculation. During a brief press conference at Kettler Capitals Iceplex Tuesday, general manager George McPhee admitted that Varlamov's future with the team was uncertain:
"We've negotiated. I don't know any more than you do at this point, whether it will happen or not."
The Caps extended a qualifying offer to Varlamov Monday, which means that Washington has the right to match any offer that Varlamov receives from other NHL teams. If Varlamov signs with another NHL team, the Caps would receive draft pick compensation. Yet, if he signs in the KHL, the Caps will receive nothing, but the Caps would control his NHL rights.
This story will be updated as more information becomes available.