Former Atletico captain Torres has failed to make an impact at Milan following a loan move from Chelsea and the Serie A club are reportedly keen to cancel his contract.
Torres was a huge fans' favourite at boyhood club Atleti before joining Liverpool back in 2007 and is still held in high regard at Vicente Calderon.
Cerezo on Tuesday dismissed talk that Torres' return to the Spanish champions is a done deal, but the Atletico supremo hinted that the 30-year-old could be on his way back to the capital.
He told TVE: "There is no Torres deal, but that doesn't mean that it"s not going to happen.
"We have a great team with all positions well covered. Until, the transfer window is closed there is always the possibility of bring a player in.
"We're going to do our best in competing for all three trophies this season."
Torres has scored only one Serie A goal in 10 appearances for Milan.