Atletico Madrid is close to sealing a deal for Spain forward Fernando Torres to return to his boyhood club, assistant coach German Burgos said on Saturday.

Later in the day, Torres' parent club Chelsea announced that the player's loan switch to AC Milan would become permanent next month but Spanish media reports said that was simply a formality ahead of another loan move to Atletico being finalized on Sunday.

Italy winger Alessio Cerci will switch from the Spanish capital to Milan as part of the deal, which will run until the end of the 2015-16 season, according to the reports.

"It is on the verge of completion and we are waiting for things to firm up," said Burgos of the agreement for the striker to rejoin Atletico.