Spain star Torres and England ace Gerrard are both expected to feature in next summer's finals as both countries top their respective qualifying groups with 100 per cent records.
Torres and his countrymen, who are currently participating in the Confederations Cup, would travel to South Africa as favourites having won Euro 2008.
The 25-year-old is confident that Spain would triumph in a potential final meeting with Gerrard and England, who were defeated in a friendly meeting in February in Seville.
"It's a good rivalry, we talk about it a lot and dream about what might happen in the future," Torres said in the Sunday Mirror.
"To play against England is special for me. Already I noticed in the friendly in Seville how big it was and to do it in an official competition would be enormous.
"England are one of the candidates to win the World Cup in 2010, without doubt. Stevie and myself have often spoken about our teams.
"Our dream would be for England and Spain to play in the final in South Africa. But Spain might win it."