Raul, who like Torres started his career with Atletico, said: "I look at Torres and I see myself in that baby face - he has a lot of character.
"There are plenty of talented players who don't have the desire that Torres has. Since he made his debut for Atletico, I've always said 'This guy's the real thing'.
"I have no doubt he is going to be the player of his generation, for club and country.
"Fernando can take advantage of pace, youth and desire. He is a great footballer and he will be even better in a few years' time. He has got it all - it's frightening. His speed is overwhelming.
"He's big and strong and his head is in the right place, too.
"He will only improve in the future, which is great news for Liverpool and Spain."