The Sun says Anfield chief Rafa Benitez has agreed to pay £25 million for the 23-year-old Spanish international.
But Torres is entitled to 10 per cent of any fee and Atletico insist Liverpool should pay it.
The Premiership outfit are adamant the cash should come out of the transfer pot and want it knocked off the price.
Benitez's own agent Garcia Quilon is trying to broker a deal and Liverpool are confident they will get their man.