BBC Sport says a transfer has now been agreed between Liverpool and Atletico, with Diego Forlan replacing the departing Torres.

Liverpool's Luis Garcia is likely to go in the opposite direction for £4.5m, but the Torres deal will not collapse if he rejects the switch.

Liverpool hope that he could put pen to paper within the next few days.

Atletico's announcement that they had agreed a £14.2m deal to sign former Manchester United striker Forlan on a four-year contract from Villarreal is effectively confirmation that Torres is on his way to Anfield.

Liverpool officials are playing their cards close to their chest on what will be a move that shatters their previous club record deal, the £14m paid to Auxerre for Djibril Cisse three seasons ago.

But it is understood the framework of the Torres move is finally in place between the two clubs after lengthy and complicated negotiations - although Liverpool remain cautious until it is actually signed and sealed.