On 24 January 2016, thanks to a strike by Venezuelan midfielder, AEK won 1–0 against PAOK and remain at the second Super League position, behind the previous year's champions Olympiacos. Vargas was impressive in January 2016, scoring four times, and was honored by magazine "Diario Goleador" as the best Venezuelan footballer of the month. AEK Athens manager Gustavo Poyet used the 29-year-old international mostly as right winger, which helped him scoring more and also creating goals for his teammates. On 13 February 2016, Vargas scoring after Diego Buonanotte's missed penalty kick, helping his club to escape with a 1–0 win against the undefeated champions Olympiacos. It was the key player coming as a substitute in the derby whereas referee sent off visitors' Alberto Botia, Luka Milivojević (for the penalty incident) and home team's Rodrigo Galo Brito, while Felipe Pardo suffered a strain injury during first half. It was named Man of the match. On 28 February 2016, thanks to a free kick from Vargas, who was also the only scorer against PAOK and Olympiacos, AEK beat rivals Panathinaikos 1–0. Greek Cup's final against Olympiakos was most likely the last appearance of Vargas in season, as the 29-year-old international has suffered a left adductor strain injury. On December 2016, the agent of Venezuelan attacking midfielder was in talks with the administration of AEK over his client's contract extension. The current contract of 30-year-old international expires at the end of 2016–17 season, and his agent wanted to ask technical director of the club Daniel Majstorovic if they are interested in extending it before January 2017 or not. On 22 April 2017, he received an offer for a two-year contract extension, with an annual fee of €300,000. Despite his team's desire to maintain his services, Vargas will leave the club as he isn't pleased with either the offer or his team role. After the announcement of his upcoming departure he was heavily linked with Panathinaikos. In September 2017, Vargas signed for Australian A-League club, Newcastle Jets on a one-year deal as their marquee player for the 2017–18 season. In a Round 3 clash with the Brisbane Roar, Vargas suffered a compound fracture of the leg, ruling him out for a large part of the season, a short time in to his A-League career.