Chelsea smashed the British transfer record to sign Spain striker Fernando Torres for £50 million ($A80.3 million) from Liverpool on a dramatic final day of the January transfer window.

The move came less than an hour after Liverpool broke the record with a £35 million ($A56.21 million) swoop for Newcastle forward Andy Carroll.

Fernando Torres arrives for training in Liverpool on Monday. Credit:AFP

The Blues last week had a £35 million ($A56.2 million) offer for Torres rejected, a move which prompted the 26-year-old to submit a written transfer request on Friday, which was also turned down.

But Chelsea owner Roman Abramovich was determined to revitalise his faltering English champions and the Russian finally got his man late on Monday.