David Cartlidge of ESPN UK shared confirmation from the club of Torres' new deal, noting his release clause is a "quite staggering" €100 million.
The 18-year-old, who previously had a release clause of £21.9 million, made his full La Liga debut for Los Che earlier this season, and MailOnline's Simon Jones wrote both Barca and Real were keeping track of his progress.
Torres has made nine appearances for Valencia this season in what's been something of a breakout campaign for the youngster.
The starlet earned his first La Liga start in February and assisted in a 1-1 draw at San Mames against Athletic Bilbao. Sky Sports presenter David Garrido broke down his list of achievements in a whirlwind season:
However, despite the fact that Liverpool already have two star wingers in Mohamed Salah and Sadio Mane, the ranks look slim beyond that duo, with no natural replacements in Jurgen Klopp's squad.
The German manager has shown a preference for promoting young talent during his time at the Anfield helm, offering the likes of Trent Alexander-Arnold, 19, and Joe Gomez, 20, extended minutes in his setup.
As well as racking up nine first-team appearances for his club this season, Torres has scored twice in five appearances for Spain's under-19 side after earning his debut for them at the beginning of this year.
Real Madrid, in particular, have shown motivation to snap up several of Spain's young, emerging talents, with the likes of Marco Asensio, Dani Ceballos and Jesus Vallejo all signed from other Spanish sides in recent years.
Early signs suggest Torres will be a future star at club and international level, but interested clubs will have to look elsewhere after his new contract at Valencia.