With players in virtually every position under-achieving this season, Reina has been the only one to consistently produce high standards for the Reds.
In the recent victory at Aston Villa the Spain international, who is behind Iker Casillas in the pecking order for La Roja, made some instinctive, crucial saves - and that is why Torres rates him so highly.
"Like always he's having a really good season. For me he's now the best keeper in the world," said the 25-year-old.
"In Spain everyone knows he's a very good keeper and in England there is no doubt he is the best.
"He's played at a top level since he signed here and won many Golden Gloves (for the most clean sheets) - and hopefully he'll win one more this season.
"He's having a massive season and at Villa we won the game thanks to him. We must be really happy to have him in the team and hopefully he'll be here for a long time."
Torres has also hailed Reina's influence off the pitch and believes the experienced 27-year-old is a vital member of the squad.
"Pepe is one of the most important players in the dressing room," he said. "After Stevie (Gerrard) and Carra (Jamie Carragher), I think he's the most important. He's always happy round the place, not just on the pitch but in the dressing room.
"He is always trying to be positive and is a really good professional."