Chelsea, who were linked with a move for Torres in the summer, have been told in no uncertain terms that the 26-year-old is not available.
"Chelsea have made a bid for Fernando which has been turned down," a Liverpool spokesman told The Times.
"The player is not for sale."
Chelsea owner Roman Abramovich is a long-time admirer of the Spain international but has been unsuccessful in past attempts to lure the player away from Anfield and looks set to fail again.
There has been much speculation about Torres' future but it began to grow after the club finished seventh in the Premier League last season.
He returned to Merseyside as a World Cup winner and, with Chelsea seemingly prepared to make a bid, he insisted his commitment to the Reds was the same as when he signed in the summer of 2007.
However, his - and the club's - early-season form did little to dispel those rumours as the striker cut a frustrated and agitated figure on the pitch as Liverpool endured their worst start to a campaign since 1953/54.
Matters were not helped when it emerged a £50million buy-out clause had been inserted into his contract - which runs until 2013.
But since the appointment of Kenny Dalglish to replace Roy Hodgson nearly three weeks ago Torres has looked a rejuvenated player and in his last four matches has scored three times - which would have been four had he not had an effort against Fulham on Wednesday wrongly ruled out for offside.
Owners Fenway Sports Group, who took over the club in October, are keen to invest in the squad to ensure the likes of Torres can satisfy their desire for success with Liverpool.
To that end they are still trying to negotiate a deal with Ajax for Uruguay forward Luis Suarez.
The Dutch club's coach Frank de Boer has set a Saturday deadline for an agreement to be reached but with the asking price still a sticking point it could yet go right up to the close of the window on Monday.
Suarez is keen on a move to Liverpool and reports in Holland claim he feels "cheated" Ajax have not reached a compromise.
