Chelsea owner Roman Abramovich has given the green light to what would be the biggest domestic transfer in Premier League history, but will have to out bid Manchester City.
An insider close to the negotiations told Soccernet: "There have been two verbal offers for Torres, Chelsea are willing to pay £50 million, but Manchester City offered verbally £25 million more!
"Liverpool would naturally want the bigger sum, but Torres as made it perfectly clear that he won't be joining Manchester City, even though City would go as high as £200,000-a-week wages.
"Even so Chelsea would pay Torres £140,000-a-week and when you're at that level, the important thing for the player is to go to a club with Champions League football and the chance of winning the major honours.
Liverpool, who are still to appoint a new manager after parting company with Rafael Benitez last month, have not formally acknowledged Chelsea's approach.
The blues are also in the hunt to sign Yossi Benayoun from the Anfield club and Soccernet's source expects both players to be at Stamford Bridge next season.
"If you are asking my opinion both Torres and Benayoun will go to Chelsea, the Benayoun deal is very close to completion, but Torres won't be sorted out now until after the World Cup Finals."