He'll never sign for Madrid or any other british club. The lad is a rare bread of footballer who puts loyalty before money. Just look at the likes of Giggs and Maldini to name but a few.
If he is loyal like you said why is he not still at Athletico, the reason being his career comes first before anything else. A footballers career only lasts about 12 years at the top which means the next contract Torres signs will be the main one which will take him through his peak years as a player. What this means is that the next club he plays for has to provide him with the platform he needs to achieve his ambitions be it an English Club or Madrid, it wont stop him. What you fail to understand about Giggs and Maldini is that they were extremely lucky to play for the clubs they supported that just happend to be the best in the world at the time this helped them achieve everything they needed, same as players who supported us like Ian Callaghan, Jimmy Case, Tommy Smith and Sammy Lee thats why they never needed to play for anyone else.