The midfielder joined Fiorentina on loan from Arsenal last summer and the Italian club also reserved an option to make the move permanent.
Torreira featured 35 times for the Serie A outfit and Fiorentina were widely expected to sign him on a permanent deal.
But it has been claimed there has been a U-turn and the Uruguayan is set to return to Arsenal in the summer.
According to the Italian outlet Calciomercato.com, Fiorentina are not prepared to pay the fee required to sign Torreira on a permanent deal.
The Serie A outfit believe €15m is too much money for Torreira and they will not be signing him unless Arsenal decide to offer a discount.
The Gunners may be unlikely to accommodate any more negotiations and Torreira is now expected to report for pre-season at Arsenal.
However, he has a year left on his contract and Arsenal could keen to sell him in the upcoming transfer window.