The interim Blues boss has played down suggestions that such a deal could be in place, with the Colombian striker himself insisting he is happy to stay at Atletico Madrid
Torres has struggled to settle at Stamford Bridge since his £50 million move from Liverpool in 2011, scoring just 11 goals in 45 games this season. Falcao, meanwhile, has been a revelation after moving from Porto last summer, netting 36 times and helping Atleti to their second Europa League crown in three years.
Speculation has arisen that Torres, who was made club captain of the Madrid outfit when he was just 19, could be in line for a return to his boyhood club with the Colombia international moving to west London.
But Di Matteo has played down the reports at a press conference ahead of the Champions League final in Munich.
"This is only speculation. I have a great relationship with Fernando, and I believe he will be here next season," he said.
Falcao has also moved to dismiss speculation surrounding his future, despite Los Rojiblancos failing to qualify for the Champions League.
"I am enjoying the moment with Atletico Madrid, I can't waste that," he told Sport.
"Moreover, I have four more years on my contract and I am only thinking about this.
"I think I am experiencing a special moment in my sporting career. I have obtained objectives that I had been thinking about for a long time, but I have a greater desire to continue growing and conquering other projects or dreams.''
Falcao’s future may well be out of his hands, however, after Atletico were beaten to a Champions League place by Malaga.
General manager Miguel Angel Gil hinted that some of the club’s most prized assets may need to be sold if they failed to secure the financial windfall that comes with a place in Europe's premier club competition.
And the former River Plate forward admitted he was keen for the speculation to be resolved sooner rather than later.
"Obviously Gil said there was a necessity to qualify for the Champions League due to the economic side of things, but the club is making efforts to maintain the squad and we will have to wait and see how the make-up of the team is resolved in the coming months,'' he concluded.