Forlan switch could allow Torres move

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Torres has been linked with a £27million move to Merseyside and the transfer of former Manchester United frontman Forlan looks likely to pave the way for the 23-year-old to move to Anfield.

Uruguay international Forlan, who is currently on international duty in the Copa America, has agreed a four-year deal with the Primera Liga club.

A statement on the Atletico website read: "Atletico Madrid, Villarreal and the representative of Diego Forlan have reached an agreement for the transfer of the Uruguayan player to the Rojiblanco club for the next four seasons."

Liverpool manager Rafael Benitez has reassured fans he is working on signings "all the time" as he closes in on Torres.

The Reds boss remained tight-lipped over any deal between the Reds and Atletico Madrid for the striker but sources close to the club insist that only personal terms with the Spanish international now need to be concluded when he returns from holiday next week.

The Anfield club are expected to pay close to the £27million buy-out clause in the player's contract and, while Benitez refused to name names, he did admit he hoped new players would be arriving "soon".

Benitez said: "You must always be excited at the start of a new season. You must also have confidence in your team and hopefully we will soon bring in the new players that we want to make the squad better.

"We are working on new signings all the time. As I've already said, the spine of the team is in place and now we just need to add to that."