Torres is convinced Gerrard can lead from the front after stepping in to skipper the team following Ferdinand's injury.
He told the Daily Star Sunday: "Stevie is the right choice as captain.
"With all due respect I would have made him captain anyway before the Rio Ferdinand injury.
"He is the best captain I have ever played under. As long as we don't meet earlier, I see it being an England versus Spain final.
"They have fantastic players all over the pitch. I have been telling the Spanish lads all about them.
"I see Gerrard and Rooney on the same level as Messi, Xavi, Kaka, Ronaldo and the other top players.
"It would be a dream to play England in the final and an England-Spain final would be a showcase of the two best nations in world football."