Torres has started the 2012-13 season impressively, scoring two goals in three Premier League matches for the Blues so far.
"Torres is a great striker, one of the best in the world," Falcao told EFE. "He has scored some fine goals in his most recent games.
"I admire him for all that he has done for football. He is a player I have been keeping tabs on throughout my career."
However, the Colombia international is confident that Atletico can get the better of Roberto Di Matteo's side in Monaco despite Torres's form.
"Chelsea are a great team and you have to respect them," said Falcao. "However, we do not fear them.
"They have some excellent players who could make the difference, but we have to focus on our own performance.
"We have the quality to cause them all kinds of problems."
Chelsea won the Champions League last season, while Atletico emerged triumphant in the Europa League.