Denied by the television match official in the first half, when his left knee hit the touchline just before touching down in Englands first real scoring opportunity, the Leicester Tigers winger grabbed his second international try in the closing minutes of the game as England were beaten 44-12 in the second Test.
The Guinness Premierships top try-scorer of 2007/08 crossed on the right after a pass from full-back Mathew Tait.
New Zealand led 20-0 at half-time after tries from Richard Kahui and Dan Carter, who added two penalties and two conversions, before scrum-half Danny Care made a breakthrough for the tourists.
Ma'a Nonu, Sione Lauaki and replacement scrum-half Jimmy Cowan added further converted tries for the All Blacks, with Varndell adding Englands consolation.
Tigers back row Tom Croft received a late call on to the bench after David Strettle failed a fitness test and he was called into the action after 57 minutes, with Croft and Joe Worsley replacing Luke Narraway and Tom Rees.
Lock Ben Kay appeared as a 69th minute replacement for Tom Palmer.
Toby Flood, who joins Tigers from Newcastle Falcons this summer, started the game at fly-half before taking a knock and being replaced shortly before half-time.
New Zealand: MacDonald; Sivivatu, Kahui, Nonu, Wulf; Carter, Ellis; Tialata, Hore, Somerville, Thorn, Williams, Thomson, McCaw (capt), So'oialo. Replacements: Mealamu, Woodcock, Boric, Lauaki, Cowan, Donald, Muliaina.
England: Tait; Ojo, Tindall, Noon, Varndell; Flood, Care; Payne, Mears, Stevens, Palmer, Borthwick (capt), Haskell, Rees, Narraway.
Replacements: Hobson, Paice, Kay, Worsley, Richards, Barkley, Croft