It has been 18 years since the Reds last won a domestic league title.
“I believe we can win the Premier League or the UEFA Champions League,” Torres told LFC Magazine.
“Arsenal produce great football, Liverpool and Chelsea are very difficult teams to play against and Manchester United played fantastically well last year.
“All the teams have different styles but are equally effective.
“I think the four biggest teams in England are now the best in Europe.
“We have a good chance of doing well but it won’t be easy to finish above any of the other three sides.”
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.