The two biggest clubs in Spain have been sounded out about Torres' future but have shown no interest in the £50million striker.
Despite similar rumblings at Barcelona about the future of David Villa, coach Pep Guardiola insists he is not for sale and maintains there will not be an opening at the Nou Camp for Chelsea's misfiring front man.
Real coach Jose Mourinho is not short of striking options and Torres' previous career at city rivals Atletico would be a major obstacle to a move to the Bernabeu.
Although Chelsea insist Torres is part of their plans, the latest in a string of denials simply protects the club in the event they cannot find a buyer in January.
The option of an emotional return to Atletico has also been ruled out because the club owe €200million and cannot afford either a transfer fee or meet their former captain's salary expectations.
Atletico striker Falcao worked under Andre Villas-Boas when he was at Porto but swapping the two forwards is also prohibitively expensive. Falcao is owned by a third party and Chelsea would have to buy the Colombian outright to comply with Premier League rules.
Torres has failed to make an impact at Chelsea since his £50m move from Liverpool and refused to celebrate Frank Lampard's emotionally charged winner against Manchester City on Monday.