Since starring in the Cats' premiership last year Varcoe has been dogged by a foot problem that has kept him to one AFL game this season, Geelong's round 22 win over the Western Bulldogs.
Varcoe played barely a quarter of that game, limping from the ground at quarter-time after injuring his ankle in a tackle on Bulldog Nathan Djerrkura. He was subbed out of the match early in the second quarter and missed the Cats' win over the Sydney Swans last Saturday.
But Balme said on SEN radio that Varcoe should recover in time for the Cats' first final.
"Travis Varcoe should be right to play this week. I think he was a bit sore [but] apart from two or three long-termers we're in good shape," Balme said.
The Cats regained another player from the long-term injury list last Saturday, when ruckman/forward Nathan Vardy made a promising return from a hip injury against the Swans. In his first AFL game since round 21 last season, Vardy had nine disposals, 10 hit-outs and kicked a goal against the Swans.
Balme said Vardy had resumed full training about eight weeks ago but the Cats had previously resigned themselves that he would not return in 2012.
"We're very pleased. We were a bit surprised he came up so well," Balme said of Vardy.
"We certainly weren't factoring him in for AFL footy this year … obviously there was a glimmer [of hope], but he's been terrific.
"His work's been good, he's worked very hard in his rehab, and [after] just playing two VFL games he came through pretty well so it was worth a risk."
For the first time since 2005, Geelong will start a finals campaign from a position outside the top four this year.
Despite the difficult path the sixth-placed Cats must tread to win this year's flag, Balme said the players were embracing the challenge.
"They're a very competitive group. We've progressed pretty well this year. We had some ordinary form earlier on, but we've worked pretty well through it," he said.
"It's a big challenge, a big ask, but you can only be there, can't you?"
