diff --git a/src/cache/inmemory/policies.ts b/src/cache/inmemory/policies.ts
--- a/src/cache/inmemory/policies.ts
+++ b/src/cache/inmemory/policies.ts
@@ -912,7 +912,7 @@ function makeFieldFunctionOptions(
     canRead,
     readField<T>() {
       return policies.readField<T>(
-        normalizeReadFieldOptions(arguments, objectOrReference, context),
+        normalizeReadFieldOptions(arguments, objectOrReference, variables),
         context,
       );
     },

diff --git a/src/cache/inmemory/__tests__/policies.ts b/src/cache/inmemory/__tests__/policies.ts
--- a/src/cache/inmemory/__tests__/policies.ts
+++ b/src/cache/inmemory/__tests__/policies.ts
@@ -1650,6 +1650,80 @@ describe("type policies", function () {
       expect(cache.extract(true)).toEqual(expectedExtraction);
     });
 
+    it("should return correct variables in read function", function () {
+      const cache = new InMemoryCache({
+        typePolicies: {
+          Country: {
+            fields: {
+              isCanada: {
+                read(_, { readField }) {
+                  return readField("name") === "CA";
+                }
+              },
+              name: {
+                read(_, { variables }) {
+                  return variables?.code;
+                }
+              }
+            }
+          }
+        }
+      });
+
+      cache.writeQuery({
+        query: gql`
+          query Countries($code: ID!) {
+            country(code: $code) {
+              name
+            }
+          }
+        `,
+        data: {
+          country: {
+            __typename: "Country",
+            name: "CA",
+          },
+        },
+        variables: {
+          code: "CA",
+        },
+      });
+
+      const expectedExtraction = {
+        ROOT_QUERY: {
+          __typename: "Query",
+          "country({\"code\":\"CA\"})": {
+            __typename: "Country",
+            name: "CA",
+          },
+        },
+      };
+
+      expect(cache.extract(true)).toEqual(expectedExtraction);
+
+      const expectedResult = {
+        country: {
+          __typename: "Country",
+          name: "CA",
+          isCanada: true,
+        },
+      };
+
+      expect(cache.readQuery({
+        query: gql`
+          query Countries($code: ID!) {
+            country(code: $code) {
+              name
+              isCanada @client
+            }
+          }
+        `,
+        variables: {
+          code: "CA",
+        },
+      })).toEqual(expectedResult);
+    });
+
     it("read and merge can cooperate through options.storage", function () {
       const cache = new InMemoryCache({
         typePolicies: {

FieldFunctionOptions return incorrect variables
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**Intended outcome:**
<!--
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Prior to 3.5.0 and according to the doc, we can add a local-only field and utilize the policy file to populate the data by using the `read` and `readField` functions if necessary.

Code may look something like this:
```
fields: {
  isCanada: {
    read(_, { readField }) {
      return readField("name") === "Canada";
    }
  },
  name: {
    read(name, { variables }) {
      return name;
    }
  }
}
```
The `variables` in the `read` function should always return the actual variable passed to this particular query. So something like:
```
{
  code: "CA"
}
```
**Actual outcome:**
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Instead of returning the actual variables, it returns other metadata like:
<img width="221" alt="image" src="https://user-images.githubusercontent.com/7050316/172903626-434f3813-554b-4767-a552-6b026cf20817.png">

The actual variables are in `variables.variables` now

**How to reproduce the issue:**
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Instructions for how the issue can be reproduced by a maintainer or contributor. Be as specific as possible, and only mention what is necessary to reproduce the bug. If possible, try to isolate the exact circumstances in which the bug occurs and avoid speculation over what the cause might be.
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Set up a local field and the read function for that field. In that read function, have it access another field using `readField` function.  Set up another read function for the field being accessed, then console log the variables.

https://codesandbox.io/s/quizzical-panka-x9v60j?file=/src/index.js

Sorry I know I'm probably not supposed to share speculation but this is what I've found:
In 3.5.0, it passes the `context` object to `normalizeReadFieldOptions` function and later `options.variables` would essentially equal to that `context` object
https://github.com/apollographql/apollo-client/blob/538b79594d02189f511622d8fed85b679d69dfd3/src/cache/inmemory/policies.ts#L915

In 3.4.13, `options.variables` would equal to the `variables` object
https://github.com/apollographql/apollo-client/blob/92141607ff6c650145350c222a2434cd7008e4b5/src/cache/inmemory/policies.ts#L884
There was probably a reason I wasn't aware of but just want to share what I've found, thank you

**Versions**
<!--
Run the following command in your project directory, and paste its (automatically copied to clipboard) results here:

`npx envinfo@latest --preset apollo --clipboard`
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System:
    OS: macOS 12.3.1
  Binaries:
    Node: 14.19.3 - /usr/local/opt/node@14/bin/node
    npm: 6.14.17 - /usr/local/opt/node@14/bin/npm
  Browsers:
    Chrome: 102.0.5005.61
    Edge: 102.0.1245.33
    Firefox: 101.0
    Safari: 15.4
  npmPackages:
    @apollo/client: ^3.5.0 => 3.5.0

