A name used to denote both a grape and a style of Madeira, a wine that hails from the island of the same name that is located off of the coast of Portugal. The heavy wines of Madeira go through a process where the wines are fortified and then oxidised slowly over time by the heat of the estufagem (sun rooms) that they are kept in. Verdelho Madeira is somewhere between off-dry and sweet, depending upon the age of the wine. Because Madeiras have already gone through the oxidation process that will kill other wines they can age indefinetly. Fine examples can be found that date back to the 19th century.
Still wines produced from the Verdelho range from light and citrusy when they are found in the hotter regions of Australia, to off-dry or even somewhat bland when they are found in the Duoro valley of Portugal where the grape is known as Gouveio. As the name suggests there are many similarities to the Verdejo of Spain and the Verdello of Italy though no concrete evidence of a connection exists as of yet.