The Spaniard will remain at Atletico Madrid next season after helping the club achieve a level of success this season.
They placed third in the La Liga and are in the finals of the UEFA Champions League which will come up later this month against Real Madrid.
Head coach of the club, Diego Simeone has hinted he wants Fernando Torres to remain at the club. Torres scored the opener and assisted on the second goal in Atletico's 2-0 win over Celta Vigo on the final day of the Liga season before being given a rapturous standing ovation when substituted.
The former Chelsea and Liverpool striker returned to his boyhood club in January 2015 on loan from AC Milan and his contract is due to run out next month. Torres revealed last week that there had been discussions over a new deal and Simeone said he would like the 32-year-old to stay on, as long as he continues to perform well. Torres has scored in six of his last seven starts for Atletico.
“Fernando has never complained about having to fight for his place,'' Simeone told a news conference.
"When I spoke to him I said I didn't want him to return as a club idol, but we needed him to be a team player and in the last four months he's played at a very high level.
"The two parties are starting to come together and we hope that everything is seen through the lens of performances. I focus on his performances, give my opinion and then the club work on it.''
On Barcelona winning the La Liga title, Simeone said:
"They had a fantastic season, they deserved to be champions, they had difficulties and because of our presence and Real Madrid they had to fight until the end," he said.
"I also want to thank our players for the job they've done. We're pleased with our season, we managed the situations in a roller coaster of a campaign. We're happy to be able to fight with the best teams in the world, with Barcelona, Real Madrid and Bayern Munich.
"When you finish three points off the top you get the sensation that if you work hard then you can do it."