The west Londoners will offer Torres as part of a deal to land Costa.
Atletico Madrid striker Diego Costa has greatly impressed this season and Chelsea are prepared to offer Fernando Torres to the Spaniard as part of a swap deal, reports the Metro.
Costa has scored 25 goals in 32 matches for Atletico this term and has attracted the interest of some of European football’s best sides.
The Blues are among them as manager Jose Mourinho desperately looks to improve a weak strike force at Stamford Bridge.
Currently the club have Demba Ba, Samuel Eto’o and Torres upfront, with none of the trio having impressed enough this campaign.
The Spain international is a youth product at the Vicente Calderon Stadium and has a strong affection with the club having previously been their captain, before a £20m switch to Liverpool in 2007.
Torres then made a British record £50m transfer to west London in January 2011, but has failed to live up to that price-tag and has scored 42 goals in 155 matches for the club since the move.
However, the 29-year-old is still regarded as a hero at Atleti and the offer for Costa would be £20m plus the forward – something which could well interest head coach Diego Simeone.
Mourinho has been strongly linked with Wayne Rooney and Edinson Cavani in recent times, but the Portuguese coach now sees the 25-year-old as the ideal purchase and wants to finalise the deal before the attacker heads to the 2014 World Cup in Brazil.
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