Jose Mourinho is desperate to sign a top quality striker at the end of the season after seeing his side struggle to match the firepower of title rivals Liverpool and Manchester City.
Costa, 25, has scored 31 goals in 41 games for Atletico this season and is expected to be a key part of the Spain squad as they attempt to retain the World Cup in Brazil.
Torres, who made his name with Atletico before joining Liverpool, could be used as part of the deal although the Spaniards have a policy of signing younger players with re-sale value.
It is believed Atletico boss Diego Simeone would prefer to include young goalkeeper Thibaut Courtois as part of the transfer.
Courtois has spent the last three seasons at Vicente Calderon and is reluctant to return to Chelsea unless he is given assurances he will replace Petr Cech as the London club’s number one.
Mourinho has wanted to reinforce his striking options since he re-joined Chelsea from Real Madrid in 2013, and failed in an attempt to bring Wayne Rooney to Stamford Bridge last summer.
The situation has become all the more pressing given Torres’ lack of form and the fact fellow strikers Demba Ba and Samuel Eto’o are both out of contract at the end of the season.
Written by Steve Milne
