Eurosport Spain sources have revealed that the two clubs have spent several days in London talking about his possible return.
Atletico's chief executive Miguel Ángel Gil Marín has spent the weekend in London discussing the transfer and will return to Madrid on Monday where he will continue negotiating the deal.
Chelsea are believed to want Atletico Madrid centre-back Joao Miranda and are trying to negotiate a price for him within the Torres discussions.
However, Atletico have informed the London club that his buy-out clause is €30m (£23.7m) and they will need to trigger that if they want to sign the 29-year-old Brazilian.
Chelsea's interest in Miranda contradicts a statement made by Jose Mourinho over the weekend that his club were finished in the transfer market for the summer.
Chelsea have already signed Diego Costa and Felipe Luis this summer from the Liga champions, while goalkeeper Thibaut Courtois, who spent the last three seasons on loan with Atletico from the Blues, returned to the club.
Torres is considered a club legend at Atletico Madrid after progressing from the club's youth system to be their star striker for a number of seasons.
He scored 91 goals in 244 games for Atletico before moving to Liverpool in 2007.
Atletico sources also told Eurosport Spain that the club are ready to announce two more signing this week in addition to Torres.
The players were not named but the sources told Eurosport they were "important names that will be a statement of intent to fans."
- Sports & Recreation
- Atletico Madrid
- Joao Miranda