Chelsea tried unsuccessfully to land Modric last summer, but they are still linked with the Croatian star.
Redknapp, who insists he wants Modric to remain at Spurs for the long-term, has now been credited with a possible interest in Torres.
But he has bee quick to play down talk of any potential deal for the Spaniard, insisting he can see him returning to his best at Chelsea.
Torres has failed to impress since his move Stamford Bridge, but Redknapp does not envisage any sort of move.
"No I have never heard that one," he said when asked about a potential Torres-Modric swap.
"I think Torres is starting to look the player that we all know he can be, the player he was at Liverpool - he is a top player no doubt that about it.
"But there is no way he is coming to Tottenham and no swap deal in the offing for Luka Modric, I think they will get the best out of him."
Redknapp remains hopeful that a new deal will be agreed for Modric.
"I don't know where they are but hopefully the chairman will come to agreement and he signs a new contract, he has got a long contract anyway," he said.
Redknapp also confirmed that on Sunday he would be travelling to the South of France to watch Marseille v Lille, with Loic Remy the reason for his trip.
"I am off to watch Marseille, I am going to go and have a look at him [Remy], we have had reports - I watched him 18-months two years, ago I doubt anything will come of it but we are looking."