I've just read his interview on the Liverpool website, the tone of all his answers is very much "i'm staying put". However, it's interesting to note that he isn't, at any point, specifically asked to commit his future to the club, or to categorically state he'll be there this season. I'm not saying I believe he's leaving, in fact it seems highly likely he'll stay put, but it's not 100% cut and dried.
Regardless, I'd love a fit Torres at City, he's quite simply exceptional. However he's struggled with fitness for 18 months now, and at a reported £40m or possibly more, you'd want nailed on can't fail rather than a player with a less than stellar fitness record.